Michael Saylor, cofounder of the Bitcoin-focused company MicroStrategy, has taken to his official account on the X social media network to make an important announcement. Saylor said that MicroStrategy is pricing its Strike Preferred Stock Offering, planning to raise not $250 million but $584 million.
MicroStrategy raises STRK offering to half billion USD
Saylor published a link to a press release published by MicroStrategy, adding a summary about the company raising the fundraising target. On Jan. 30, MicroStrategy made an offering of 7,300,000 shares of 8.00% titled Series A Perpetual Strike Preferred Stock (STRK).
The public offering price is $80.00 per share. This is perpetual stock; therefore they do not have a maturity date, and MicroStrategy will not have to redeem it later on. The company just offers 8% of an annual dividend yield on it. However, MicroStrategy will have the right to redeem that stock in cash at its own discretion.
MicroStrategy announces pricing of its Strike Preferred Stock ($STRK) Offering and upsizes the deal from $250M to $584M $MSTR https://t.co/1PoDxjQDNS
— Michael Saylor⚡️ (@saylor) January 31, 2025
According to the document shared by Saylor, the stock will be issued and sold on Feb. 5. Per the company’s estimates, it will be possible to raise $584 million rather than $250 million. The preferred liquidation price is $100 per share.
STRK holders will be able to convert them into MicroStrategy’s class A common stock on any business day. “The initial conversion rate is 0.1000 shares of MicroStrategy’s class A common stock per share of perpetual strike preferred stock, which represents an initial conversion price of $1,000.00 per share of MicroStrategy’s class A common stock,” the press release says.
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Forbes features Saylor on its cover
As reported earlier today, Forbes magazine’s recent issue contains an article about Michael Saylor and a photo of him on the front cover. The article refers to him as “The Bitcoin Alchemist.”
The article shared with a wide reading audience the story of Saylor as a businessman and of MicroStrategy as it started regular Bitcoin accumulation in August 2020, in the middle of the pandemic. Back then, Saylor began calling the U.S. dollar trash and decided to use the company’s cash balance to purchase BTC. Recently, the firm acquired $1.1 billion worth of Bitcoin, now holding a total of 471,107 BTC worth approximately $50 billion in fiat.
