MicroStrategy™ (NASDAQ: MSTR/STRK) announced the successful pricing of its 10.00% Series A Perpetual Strife Preferred Stock offering on March 20, 2025. The company issued 8,500,000 shares at $85.00 per share, generating approximately **$711.2 million in net proceeds after accounting for underwriting fees and expenses. These funds will primarily support bitcoin acquisitions** and general corporate operations.
Key Features of the Preferred Stock Offering
Dividend Structure
- Fixed 10.00% annual dividend rate on the $100 stated value per share.
- Quarterly payments (March 31, June 30, September 30, December 31), commencing June 30, 2025.
- Compounding penalties: Unpaid dividends accrue additional interest at +100 basis points annually, capped at 18%.
Redemption and Repurchase Rights
- MicroStrategy may redeem shares if outstanding stock falls below a threshold or due to tax implications.
- Investors can demand repurchase at face value plus unpaid dividends during a "fundamental change" event.
Liquidation Preference
- Initial $100 per share liquidation value, adjusted daily based on predefined criteria.
Underwriting and Compliance
The offering was managed by a consortium of investment banks, including Morgan Stanley, Barclays, and Citigroup, under an SEC-registered shelf statement.
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MicroStrategy’s Bitcoin Strategy
As the world’s largest bitcoin treasury company, MicroStrategy integrates BTC into its core financial strategy. The firm utilizes equity/debt financing and operational cash flows to accumulate bitcoin, alongside its AI-driven analytics software ventures.
Market Reaction
Following the announcement, MSTR shares saw a 0.6% increase, trading at $304.00.
FAQ Section
1. What is the purpose of MicroStrategy’s preferred stock offering?
The $711.2 million raised will fund bitcoin purchases and general corporate needs, reinforcing its treasury reserve strategy.
2. How are dividends calculated for the Perpetual Strife Preferred Stock?
Dividends accrue at 10.00% annually ($10 per share), paid quarterly. Unpaid dividends compound at escalating rates.
3. Can investors sell back their shares?
Yes, holders may demand repurchase at $100 + accrued dividends during major corporate changes.
4. What happens if MicroStrategy redeems the shares?
The company may buy back shares at specified terms, particularly for tax or threshold-related triggers.
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Disclaimer: This analysis is based on public data and is for educational purposes only. Not investment advice. Past performance does not guarantee future results. Always conduct independent research.
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