PANews reported on January 31 that MicroStrategy founder Michael Saylor (@saylor) posted on Twitter that MicroStrategy announced the issuance pricing of its Strike preferred stock ($STRK) and increased the original transaction size from US$250 million to US$584 million.
According to the official announcement, Nasdaq-listed MicroStrategy (MSTR) announced the completion of the issuance of 7.3 million shares of Series A perpetual exercise preferred stock (STRK), priced at $80 per share, with an estimated net financing of $563.4 million. The liquidation price of the preferred stock is $100 per share, with an annual dividend rate of 8%, which can be paid in cash or Class A common stock and can be converted into common stock at an initial conversion price of $1,000 per share.
MicroStrategy said the financing will be used for general corporate purposes, including continuing to increase its holdings of Bitcoin and replenishing operating funds. According to the terms, if the total liquidation value of the outstanding preferred shares is less than 25% of the total issuance amount, the company can redeem them in full; if a major tax or legal event occurs, investors can request a repurchase.
The issuance is jointly underwritten by Barclays, Moelis & Company and other institutions, and is expected to be completed on February 5, 2025. As of January 2025, MicroStrategy holds approximately 190,000 bitcoins, and this financing may further expand its bitcoin holdings.
