MicroStrategy Is Raising $584 Million To Fuel Even More Bitcoin Buys ⋆ ZyCrypto

Software intelligence company MicroStrategy keeps devising new ways to acquire Bitcoin (BTC). The Michael Saylor-founded firm announced on Jan. 31 that it had finalized the price of its perpetual preferred stock offering, which it will use to raise funds to buy even more of the foremost crypto.

MicroStrategy Raises $584 Million

Publicly traded MicroStrategy announced the pricing of its Thursday offering by selling 7.3 million shares of 8% Series A perpetual strike preferred stock, also known as STRK. STRK will go for a public offering price of $80 per share.

MicroStrategy estimates the net proceeds from the offering will hit $563.4 million, which will go towards “general corporate purposes, including the acquisition of Bitcoin and for working capital.”

The company’s founder and Executive Chairman, Michael Saylor, said on X (aka Twitter) that it had upsized the perpetual preferred stock deal from raising $250 million to $584 million.

The new pricing raises the dividend yield to 10% from an initially projected 8%, which is likely to boost investor demand. The perpetual strike preferred stock does not have a maturity date, and MicroStrategy will not have to redeem it later on, instead, it pays fixed dividends indefinitely. The offering will have a liquidation value of $100 per share. However, the Tysons Corner, Virginia-based software firm, will have the right to redeem that stock in cash at its discretion.

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MicroStrategy Continues Bitcoin Buying Spree

In October 2024, MicroStrategy unveiled a “21/21 Plan” to raise a whopping $42 billion — half through equity, half through debt— over the next three years to buy even more Bitcoin.

Just last week, the company’s shareholders voted for a 30x boost to the number of authorized Class A common shares to help it fund its BTC purchases. The rationale is that with more shares on the market, there will be more sales and, therefore, more money to acquire Bitcoin.

MicroStrategy has adopted an aggressive Bitcoin accumulation strategy, which began with a 21,454 BTC purchase in August 2020 via corporate cash. The Bitcoin-holding company currently has 471,107 BTC, worth an eye-watering $49.4 billion at the current price, with unrealized gains of more than $19 billion.

Saylor is an unabashed Bitcoin evangelist. He even invented a novel financial metric dubbed BTC Yield — which is a unique performance metric assessing its Bitcoin acquisition strategy. The tech entrepreneur has previously predicted that the premier crypto will rise up to a price of $13 million per coin over the next 21 years.