MicroStrategy Proposes 2.5M Share Offering to Acquire More BTC

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MicroStrategy has announced its plans to raise money through a stock offering for “general corporate purposes,” which includes increasing its Bitcoin holdings.

This signals the company’s intention to continue acquiring the digital currency. The offering will consist of 2.5 million units of perpetual strike preferred stock, a type of stock that offers a fixed dividend and can be converted into common stock.

The stock will have a liquidation value of $100 per share and dividends will be paid quarterly starting on March 31. The proceeds from the offering will be used for various purposes, including buying more Bitcoin and working capital.

MicroStrategy also noted that it is now primarily a Bitcoin Treasury Company, shifting away from its business intelligence software. In its last quarter, the company saw a 10.3% decrease in revenue and a decline in gross profit margin from the same period in 2023.