MicroStrategy has announced plans to raise extra funds to expand its Bitcoin Holdings via a public offer of strike preferred stock (strk), according to a January 27 rack.
The company wants to issue 2.5 million shares of its Serie A -century strike preferred shares, subject to approval of the regulatory and prevailing market conditions.
The proceeds from the offer will support business activities, including Bitcoin acquisitions and working capital.
Each share bears a liquidation preference of $ 100 and will accumulate fixed rate dividends, to be paid quarterly, from March 31, 2025. The payments can be made in cash, ordinary shares of class A or a combination of both.
Shareholders of the preference can convert their possession into class A ordinary shares under specific conditions.
The company guided by Michael Saylor also reserves the right to exchange shares if the preference of liquidation falls below 25% of the first edition or if certain tax -related scenarios arise.
Repayment prices will take into account unpaid dividends or, for tax -controlled repayments, the greater from the liquidation judge or a calculated average trading price.
This approach offers investors opportunities linked to the growth of Bitcoin, while Micrstrategy can strengthen its treasury activa.
Bitcoin analyst Dylan Leclair described The offer as an advanced financial tool that combines a dividend yield of 8% with a conversion rate of 10: 1 and a exercise price of $ 1,000.
He added that the shares actively act as a perpetual on -call option, so that investors regularly offer dividends without an expiration date.
Recent Developments
The newest range of shares from MicroStrategy follows its decision to distract a tranche of $ 1.05 billion of 2027 convertible senior notes.
According to the company, investors can do that exchange The notes at nominal value or they convert to class A shares by 24 February 2025, at a conversion price of approximately $ 142 per share.
Previously, shareholders of the Bitcoin-oriented company approved measures to increase the authorized class A shares of the company from 330 million to 10.3 billion. Moreover, the preferred authorization increased from 5 million to 1 billion shares.
These efforts are designed to strengthen the financial flexibility of the company to acquire more of the Digital Assets flagship. MicroStrategy is the largest company holder in BTC with 471,107 BTC, with a value of almost $ 50 billion in his treasury.
