Software development firm MicroStrategy (MSTR) is announcing a massive new stock offering to raise funds for accumulating more Bitcoin (BTC).

Disclaimer: The analyst who wrote this piece owns shares of MicroStrategy (MSTR). MicroStrategy's (MSTR) initial attempt to expand its capital raising activities via perpetual preferred stock appeared to have been met with strong demand.

MicroStrategy issued 7.3 million shares of 8.00% perpetual preferred stock at $80 per share, expected to bring in $563.4 million for general purposes, including Bitcoin purchases. Conversion and redemption rights apply.

MicroStrategy offers 8% dividends with preferred shares. Learn why MSTR stock’s unique structure provides a low-risk way to gain Bitcoin exposure and growth.

Led by Executive Chairman Michael Saylor, the company this week opened a new front along those lines with its perpetual preferred stock offering (STRK). Preferred stock sits between equity and debt on the corporate balance sheet,

MicroStrategy (NASDAQ: MSTR) has priced its offering of 7.3M shares of 8.00% Series A Perpetual Strike Preferred at $80.00 per share. The issuance and sale of the perpetual strike preferred stock are scheduled to settle on February 5, 2025, subject to customary closing conditions.

Bitcoin investor MicroStrategy’s $250 million preferred-stock offering may price at a discount to its face value of $100 per share due to apparent insufficient demand for the deal.