MicroStrategy Expands Sale of Series A Perpetual Strife Preferred Stock, Raising More Than $500 Million to Bolster Bitcoin Holdings

Originally targeting $500 million, the company saw such strong demand for the offering that it expanded the sale, ultimately raising more than anticipated.

MicroStrategy (NASDAQ:) announced on Thursday that it has raised over $700 million from a Series A Perpetual Strife Preferred Stock offering.

Originally targeting $500 million, the company saw such strong demand for the offering that it expanded the sale, ultimately raising more than anticipated. The capital will primarily be used to bolster the company’s Bitcoin holdings, an ongoing initiative by CEO Michael Saylor.

Known for his bullish stance on cryptocurrency, Saylor’s firm currently holds over 499,200 Bitcoin, valued at more than $33 billion at current prices. The new funds will push the company even closer to its goal of owning 500,000 Bitcoin.

The Series A Perpetual Strife Preferred Stock carries a 10% annual dividend. Unlike previous funding rounds, this stock does not come with conversion options into common stock but does feature a cumulative dividend structure. These dividends will accumulate quarterly, with compounded growth based on the time the stock is held.

This round marks a shift in the way Strategy funds its Bitcoin acquisitions. The company has previously raised funds through senior notes but is now turning to preferred stock to avoid excessive debt while still increasing its Bitcoin reserve.

Strategy’s strategy of leveraging its corporate capital to purchase Bitcoin remains a key part of its long-term vision, and the firm continues to make regular Bitcoin acquisitions.

As the company approaches the significant milestone of half a million Bitcoin, its growing influence in the crypto market is evident. The fresh capital raised from this round will enhance Strategy’s commitment to Bitcoin and its role in corporate cryptocurrency adoption.