MicroStrategy Continues Its Bold Bitcoin Strategy with a New $563.4 Million Preferred Stock Offering

The company announced on Friday that it has priced 7,300,000 shares of 8.00% Series A Perpetual Strike Preferred Stock at $80.00 per share

Business intelligence firm MicroStrategy MSTR continues to integrate Bitcoin into its corporate DNA, announcing a new $563.4 million preferred stock offering.

The company announced on Friday the pricing of 7,300,000 shares of 8.00% Series A Perpetual Strike Preferred Stock at $80.00 per share, with settlement expected on Feb. 5.

According to the press release, MicroStrategy intends to use the net proceeds “for general corporate purposes, including the acquisition of bitcoin and for working capital.”

The offering is also expected to close on Feb. 5, subject to customary closing conditions.

This move aligns with the company’s ongoing strategy of leveraging its market position to accumulate more Bitcoin.

The preferred stock offering comes on the heels of MicroStrategy’s recent Bitcoin buying spree.

The company acquired an additional 10,107 Bitcoin this week, extending its buying spree to twelve consecutive weeks and bringing its total holdings to 471,107 BTC.

This latest purchase was made at an average cost of $105,596 per Bitcoin, adjusting the company’s overall cost basis to $64,511 per coin.

MicroStrategy's Bitcoin Accumulation Strategy in Focus

MicroStrategy’s aggressive Bitcoin accumulation strategy has drawn both praise and scrutiny from analysts.

Mizuho recently initiated coverage on the company with an ‘outperform’ rating and a $515 price target, describing it as a “Lever for the Believer” in Bitcoin.

However, concerns persist about the sustainability of MicroStrategy’s premium valuation over its Bitcoin holdings.

The company’s shareholders recently approved a significant increase in authorized stock, potentially fueling further Bitcoin purchases.