Strategy Expands Bitcoin War Chest With $722 Million Upsized Preferred Stock Offering
Strategy (NASDAQ:MSTR), the company previously known as MicroStrategy, has significantly expanded its latest fundraising initiative, securing $722.5 million through a preferred stock sale aimed at fueling its Bitcoin investment strategy.
What Happened: The announcement, made Friday, revealed that the company priced 8.5 million shares of its 10% Series A Perpetual Preferred Stock at $85 each, marking an increase from its originally planned $500 million offering.
The deal, expected to close on March 25 pending standard regulatory clearance, will leave Strategy with approximately $711.2 million in net proceeds after fees and other expenses.
The firm noted the funds will primarily support corporate activities, including additional bitcoin acquisitions and working capital needs.
The newly issued preferred shares, listed under the STRF ticker, will yield a fixed annual dividend of 10% based on a $100 par value.
Dividends, if declared by Strategy’s board, will be paid quarterly …
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