MicroStrategy Plans Perpetual Preferred Stock Offering To Bolster Bitcoin Strategy

MicroStrategy Inc. (NASDAQ:MSTR) is exploring perpetual preferred stock as a new financing instrument to fuel its ongoing Bitcoin acquisition strategy, according to insights shared by Executive Chairman Michael Saylor.

What Happened: At a recent investor meeting hosted by The Benchmark Company, Saylor explained that MicroStrategy is looking to raise $2 billion through one or more perpetual preferred stock offerings in the first quarter of 2025, subject to market conditions.

This move is intended to provide investors with leveraged exposure to Bitcoin.

The meeting also covered the company’s approach to capital raising, as well as Saylor’s expectations around upcoming legislative changes within the cryptocurrency market.

MicroStrategy aims to offer returns and volatility at 1.5x those of Bitcoin itself, making perpetual preferred stock a more attractive instrument to create “intelligent leverage” due to its lack of a set maturity date, and mitigating long …

Full story available on Benzinga.com