MicroStrategy Inc. has secured $563 million through a new equity financing structure aimed at expanding its Bitcoin (BTC) holdings. The Virginia-based software company issued perpetual preferred stock at $80 per share, below the $100 liquidation preference, making the offering more attractive to investors. The stock carries a fixed 8% dividend and a conversion price of $1,000, nearly three times the company’s closing price on Thursday.
The latest capital raise exceeded initial projections, more than doubling the $250 million target. Earlier this month, MicroStrategy outlined plans to generate as much as $2 billion in the first quarter through similar offerings. Unlike previous fundraising methods that included convertible bonds and at-the-market stock sales, this new approach targets a broader investor base, including those seeking high-yield instruments.
BREAKING: MicroStrategy increased its raise to $584 million to buy more #Bitcoin pic.twitter.com/jMkH07CV4v
— Bitcoin Magazine (@BitcoinMagazine) January 31, 2025
Recent convertible notes from the company carried a 0% coupon, making the 8% fixed dividend an attractive alternative. As per regulatory filings with the U.S. Securities and Exchange Commission (SEC), the newly issued preferred stock holds seniority over MicroStrategy’s Class A common stock. Investors will receive quarterly dividends starting March 31, with payments made in either cash or additional shares.
Barclays, Moelis & Company LLC, BTIG, TD Cowen, and Keefe, Bruyette & Woods served as book-running managers for the transaction. MicroStrategy has aggressively pursued Bitcoin acquisitions since 2020, positioning the digital asset as an alternative to cash reserves.
The company’s Bitcoin holdings are valued at approximately $50 billion. Under the leadership of Chairman and co-founder Michael Saylor, the firm has intensified its crypto investments. The investments surged particularly following the election of the U.S. President Donald Trump, who has been vocal about his support for Bitcoin and the crypto industry.
The financing strategy aligns with MicroStrategy’s broader fundraising efforts, which include plans to generate $42 billion through various stock and debt offerings. The company’s Bitcoin-centric financial approach has set it apart in the corporate arena with continuous capital raises fueling its crypto accumulation strategy.
Also Read: MicroStrategy Acquires 10,107 BTC, Token Price Crosses $100K Mark