The planned issuance of 2.5 million Series A Perpetual Strike Preferred Stock (STRK) shares by MicroStrategy includes a $100 liquidation preference for each stock. The stock will provide quarterly dividend payments beginning March 31, 2025 which can be delivered in cash or Class A common stock.
Investment Features
The preferred stock offers investors an 8% dividend yield and includes a 10:1 conversion ratio with a $1,000 strike price. And most importantly, all Shareholders will have the right to switch their holdings into Class A common stock. Hence creating an ongoing call option structure.
Corporate Strategy
The collected money will be used for running operations and purchasing Bitcoin. The strategy implemented by MicroStrategy occurred after it chose to redeem $1.05 billion in 2027 convertible senior notes while significantly bosting its shares authorization limits.
Current Position
The company stands as the biggest corporate Bitcoin investor through its ownership of 471,107 BTC worth approximately $50 billion. MicroStrategy elevated its authorized stock totals by approving 10.3 billion Class A shares and 1 billion preferred shares.
New Stock Offering Details
Furthermore, the STRK program created by Microstartegy is an innovative funding method to buy Bitcoin which yields dividends to shareholders. Through strategic financial instruments the company demonstrates its ongoing dedication to bolstering its Bitcoin investments.
