January 28, 2025

CryptoInfoNet

Cryptocurrency News

Details of MicroStrategy’s Preferred Stock Offering to Support Bitcoin Acquisition Plans

MicroStrategy's Strike Preferred Stock Offering Fuels Bitcoin Acquisition Plans: Details

MicroStrategy’s Strike Preferred Stock Offering Fuels Bitcoin Acquisition Plans: Details

The business intelligence and Bitcoin-focused company MicroStrategy Incorporated (NASDAQ:MSTR) shares are trading lower on Monday.

The company disclosed plans to offer 2.5 million shares of its Series A Perpetual Strike Preferred Stock in a public offering.

The company expects to use proceeds for general corporate purposes, including bitcoin acquisitions and working capital.

MicroStrategy’s perpetual strike preferred stock carries a $100 per share liquidation preference and will accrue fixed-rate cumulative dividends, set at pricing.

The company stated that declared dividends on the perpetual strike preferred stock will be payable quarterly starting March 31, 2025, in cash, Class A common stock, or a mix of both.

Holders of MicroStrategy’s perpetual strike preferred stock can convert their shares into Class A common stock under specific conditions and during designated periods.

Also, MicroStrategy may redeem all outstanding shares for cash if the total liquidation preference falls below 25% of the initial issuance or if certain tax events occur.

The redemption price will equal the liquidation preference plus any unpaid dividends, or, in the case of a tax-related redemption, the greater of the liquidation preference or the five-day average trading price before the redemption notice.

Last week, the company announced its plan to redeem its $1.05 billion convertible senior notes due 2027 and settle all conversion requests in shares of its Class A common stock.

Investors can gain exposure to the stock via ETF Opportunities Trust T-Rex 2X Long MSTR Daily Target ETF (BATS:MSTU) and First Trust SkyBridge Crypto Industry and Digital Economy ETF (NYSE:CRPT).

Price Action: MSTR shares are down 0.66% at $351.38 at the last check Monday.

Read Next:

Photo courtesy: Shutterstock.

Up Next: Transform your trading with Benzinga Edge’s one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today’s competitive market.

Get the latest stock analysis from Benzinga?

This article MicroStrategy’s Strike Preferred Stock Offering Fuels Bitcoin Acquisition Plans: Details originally appeared on Benzinga.com

© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Source link

#MicroStrategys #Strike #Preferred #Stock #Offering #Fuels #Bitcoin #Acquisition #Plans #Details

Leave a Reply

Your email address will not be published. Required fields are marked *

Copyright © All rights reserved. | Newsphere by AF themes.