MicroStrategy — now operating under the name “Strategy” (Nasdaq: MSTR/STRK) — has priced a new preferred stock offering that will raise $711.2 million, with most of the proceeds headed straight into Bitcoin.
The company announced the pricing of its 10.00% Series A Perpetual Strife Preferred Stock on March 21, with 8.5 million shares offered at $85 each. The offering is scheduled to close on March 25, subject to standard conditions.
According to Strategy, “the net proceeds to it from the offering will be approximately $711.2 million,” after fees. The firm said it plans to use the cash “for general corporate purposes, including the acquisition of bitcoin and for working capital.”
The preferred shares come with a 10% annual dividend, paid in cash every quarter. If Strategy misses a dividend payment, it will owe extra “compounded dividends” that increase by 1% every quarter until they’re paid — up to a maximum of 18% per year.
The company added that it can redeem all of the preferred stock if less than 25% of the original amount remains outstanding or if certain tax events occur. If a “fundamental change” happens — such as a change of control — holders have the right to demand a repurchase.