MicroStrategy has announced that it will issue the pricing of 7,300,000 shares of 8.00% Series A Perpetual Strike Preferred Stock at a public offering price of $80.00 per share.
According to the official announcement, the perpetual strike preferred shares will be issued and sold on February 5, 2025, assuming normal closing conditions are met.
Stock Offerings To Generate $563.4 Million
Taking into account the underwriting discounts and commissions, as well as MicroStrategy’s expected offering expenditures, the company projects that the net proceeds from the offering will be around $563.4 million.
MicroStrategy plans to use the net proceeds from the offering for operating capital and other general company objectives, such as purchasing Bitcoin.
The perpetual strike preferred stock will accrue cumulative dividends at a fixed rate of 8.00% annually and have a $100 liquidation preference per share.
Also Read: MicroStrategy Redeems $1.05 Billion Convertible Notes Amid Potential Tax Concerns On Bitcoin Gains
The Central Bank of Norway’s Investment in MicroStrategy
Today’s news comes as previously MicroStrategy saw a huge investment from Central Bank of Norway.
As UnoCrypto reported earlier, the Central Bank of Norway has invested a hefty $500 million in MicroStrategy, obtaining a 0.72% ownership position in the business.
The noteworthy action taken by a sovereign financial institution marks a turning point in the cryptocurrency space and shows that even at the highest institutional levels, there is increasing confidence in investment strategies centered on Bitcoin.
The fact that the investment originates from a central bank, which is often among the most conservative financial institutions, makes it especially notable and points to a larger institutional shift in attitudes about digital assets and business plans centered around Bitcoin.
An important turning point in the institutional acceptance of cryptocurrencies has been reached with the combination of MicroStrategy’s ongoing Bitcoin accumulation and Norway’s Central Bank investment.
The development is probably going to have a big impact on how the cryptocurrency industry develops and how widely it is accepted.
MicroStrategy’s Hybrid Security Shelf
MicroStrategy has stated that it has established a hybrid securities shelf in addition to the present Bitcoin purchase. The funds raised will be used to support business operations and purchase more Bitcoin.
The action is consistent with the company’s overarching strategy of continuously purchasing Bitcoin.
Regardless of how volatile the market may be, Michael Saylor has consistently supported Bitcoin. He has shown his support for cryptocurrencies by consistently buying Bitcoin.
The company previously announced that it plans to raise an ambitious $42 billion over the next three years, utilizing $21 billion in stock and $21 billion in fixed-income instruments to purchase Bitcoins.
Also Read: Polymarket Bets Forecasts 64% Chance of MicroStrategy Holding 500k+ Bitcoin Before March