Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
MicroStrategy Launches $250M STRK Stock Offering to Expand Bitcoin Holdings

MicroStrategy Launches $250M STRK Stock Offering to Expand Bitcoin Holdings

CryptoNewsNetCryptoNewsNet2025/01/28 03:00
By:cryptonewsland.com
  • MicroStrategy now holds 471,107 BTC, worth over $48 billion, expanding through equity.
  • STRK preferred stock aims to raise $250M for MicroStrategy’s Bitcoin acquisitions.
  • MicroStrategy’s recent BTC buy averages $105,596 per token, increasing total holdings.

MicroStrategy which leads corporate Bitcoin ownership disclosed a major growth of its cryptocurrency asset base. MicroStrategy spent $1.1 billion to acquire 10,107 Bitcoin which bought tokens at $105,596 each on average. The new acquisition brings MicroStrategy’s total Bitcoin count to 471,107 BTC with a market value surpassing $48 billion.

MicroStrategy matches its assertive plan on gathering financing through equity and debt to support increases in Bitcoin reserves with this acquisition. A temporary decrease in portfolio value by 6.29% moved convinced the firm remains dedicated to maintaining Bitcoin as a key treasury reserve asset for its long-term goals. Bitcoin acquisitions experienced losses for MicroStrategy only twice which shows their positive return on Bitcoin holdings overall.

$MSTR today announced the launch of $STRK, a new convertible preferred stock offering available to institutional investors & select retail investors. To view the investor presentation video, learn more about participating, & access key details, click here.https://t.co/xB5GQG1uXP

— Michael Saylor⚡️ (@saylor) January 27, 2025

STRK Preferred Stock Offering Seeks $250 Million

To further strengthen its Bitcoin acquisition strategy, MicroStrategy announced a public offering of its Series A Perpetual Strike Preferred Stock (STRK). The company aims to issue 2.5 million shares, with proceeds expected to raise $250 million. This funding will support ongoing corporate operations, including future Bitcoin acquisitions and general working capital needs.

Each STRK share has a $100 liquidation preference and offers cumulative fixed-rate quarterly dividends starting March 31, 2025. Shareholders may receive dividends in cash, Class A common stock, or a mix of both. Under specific conditions, STRK shares can also be converted into Class A common stock.

The preferred stock also provides the company flexibility to redeem shares under certain conditions, including significant drops in liquidation value or tax-related scenarios. These features position STRK as an attractive financial instrument, combining the benefits of regular dividends with exposure to Bitcoin’s growth potential.

MicroStrategy’s Financial Moves Reflect Market Confidence

The STRK offering comes on the heels of MicroStrategy’s recent shareholder decision to expand its authorized Class A common shares and preferred stock significantly. This increase has enabled the company to execute large-scale Bitcoin purchases, such as the $1.1 billion acquisition funded through the sale of over 2.7 million shares of Class A common stock.

Furthermore, the firm redeemed a $1.05 billion tranche of 2027 convertible senior notes, offering investors the option to convert notes into Class A stock at $142 per share. These measures underline MicroStrategy’s robust financial planning and its confidence in Bitcoin as a long-term asset.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!