Strategy announces public offering of preferred stock

TYSONS CORNER, Va. - Strategy™ (NASDAQ:MSTR; STRK), a company recognized for its significant Bitcoin holdings and enterprise analytics software, announced its intention to offer 5 million shares of its Series A Perpetual Strife Preferred Stock in a public offering. The securities will be registered under the Securities Act of 1933, as amended. The company, currently valued at $76.6 billion, has demonstrated remarkable market performance with a 122% return over the past six months. According to InvestingPro analysis, the stock is currently trading above its Fair Value, reflecting strong investor interest in its Bitcoin-focused strategy.

The offering, subject to market and other conditions, aims to raise funds for general corporate purposes. These include the acquisition of additional Bitcoin and the enhancement of working capital. Strategy’s move aligns with its ongoing strategy to integrate Bitcoin into its treasury reserves, positioning itself as a major player in the digital asset space. With a current ratio of 0.71 and short-term obligations exceeding liquid assets, this capital raise could strengthen the company’s financial position. InvestingPro subscribers can access 10+ additional key insights about Strategy’s financial health and market position through comprehensive Pro Research Reports.

The perpetual strife preferred stock will carry a fixed cumulative dividend rate of 10% per annum, with quarterly payments scheduled to begin on June 30, 2025. Strategy has reserved the right to redeem all shares of the perpetual strife preferred stock under certain conditions, including a drop below 25% of the total shares initially offered or in the event of specific tax circumstances.

In the case of a "fundamental change," as defined in the certificate of designations, shareholders will have the option to require Strategy to repurchase their shares at a price equal to the liquidation preference plus any accumulated and unpaid dividends.

The initial liquidation preference is set at $100 per share and may be adjusted based on specific criteria, including the share’s last reported sale price and an average of sale prices over a preceding ten-day trading period.

Joint book-running managers for the offering include Morgan Stanley & Co. LLC, Barclays Capital Inc., Citigroup Global Markets Inc., and Moelis & Company LLC. The offering is being made pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission (SEC), and materials related to the offering are available on the SEC’s website.

This announcement does not constitute an offer to sell or a solicitation of an offer to buy the securities mentioned, nor will there be any sale in jurisdictions where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of those jurisdictions.

The information in this article is based on a press release statement.

In other recent news, MicroStrategy Incorporated has made significant financial disclosures, including its latest earnings and revenue activities. The company reported that it has not sold any shares of its class A common stock recently but has sold 123,000 shares of its 8.00% series A perpetual strike preferred stock, generating approximately $10.7 million in net proceeds. Additionally, MicroStrategy has maintained its substantial Bitcoin holdings, currently totaling approximately 499,226 bitcoins, acquired at an average price of $66,360 per bitcoin. In a notable move, the company acquired an additional 20,356 bitcoins for about $1.99 billion, funded through a convertible notes offering.

MicroStrategy has also declared a quarterly cash dividend of approximately $1.24 per share on its series A perpetual strike preferred stock, payable at the end of March 2025. Furthermore, the company announced its plan to potentially issue and sell up to $21 billion of its preferred stock through an at-the-market offering program. This program is intended to support general corporate purposes, including further Bitcoin acquisitions. Meanwhile, analyst firm Bernstein has provided insights into the recent Bitcoin price drop, viewing it as a potential buying opportunity, with a positive long-term outlook on Bitcoin’s market structure.

MicroStrategy’s financial activities and strategic focus on Bitcoin continue to be of interest to investors. The company emphasizes transparency through its Strategy Dashboard, offering updates on security prices, bitcoin holdings, and other key performance indicators. These developments highlight MicroStrategy’s ongoing commitment to its Bitcoin strategy and its broader financial maneuvers.

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