tl;dr
MicroStrategy has raised $563.4 million from an oversubscribed STRK stock offering, exceeding expectations. The company expanded its offering to 7.3 million shares, each with a $100 liquidation preference. The funds will be used for corporate initiatives, including Bitcoin acquisitions. Investors ma...
MicroStrategy raises $563M from oversubscribed STRK stock offering - Crypto
MicroStrategy has significantly exceeded expectations with its latest perpetual convertible preferred stock offering, securing $563.4 million—nearly three times the anticipated amount. According to a Jan. 31 statement, the company expanded its STRK stock offering to 7.3 million shares, each carrying a $100 liquidation preference. The company plans to allocate the proceeds toward corporate initiatives, including Bitcoin acquisitions and general working capital. If approved by the board, investors will earn an 8% fixed annual dividend, paid quarterly starting March 31, 2025. Payments may be issued in cash, Class A common stock, or a combination. Meanwhile, MicroStrategy retains the right to redeem all outstanding preferred STRK stock if the total liquidation preference falls below 25% of the original issuance or if certain tax events occur. The redemption price will be based on either the liquidation preference or the stock’s average market price over the last five trading days, whichever is higher.
MicroStrategy remains the largest corporate holder of Bitcoin, currently holding 471,000 BTC valued at around $50 billion. According to Saylortracker data, the firm has an unrealized profit of nearly $20 billion. Analyst OLUWAPELUMI ADEJUMO Journalist at CryptoSlate Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power. @hardeyjumoh LinkedIn Email Oluwapelumi
Crypto traders lost over $24 million in Solana due to memecoin mishaps
Crypto traders lost over $24 million in Solana due to memecoin mishaps
Ripple co-founder sent over $100M in XRP to exchanges in January
Ripple co-founder sent over $100M in XRP to exchanges in January
Bitcoin rally boosts Tesla’s 2024 Q4 net income by $600 million
Bitcoin rally boosts Tesla’s 2024 Q4 net income by $600 million