MicroStrategy Prices $563M Offering, Plans More Bitcoin Buys Despite Stock Volatility
MicroStrategy (NASDAQ:MSTR) has locked in pricing for its $563.4 million stock offering, selling 7.3 million shares of its 8.00% Series A Perpetual Strike Preferred at $80 per share.
Warning! GuruFocus has detected 6 Warning Signs with MSTR.
The deal is set to close on February 5, 2025, pending standard approvals. This preferred stock comes with a $100 per share liquidation preference and offers an 8.00% annual dividend. MicroStrategy also has the right to redeem all outstanding shares for cash if the total liquidation preference drops below 25% of the original offering.
The company plans to use the funds for general corporate purposes, which, unsurprisingly, includes buying more bitcoin alongside working capital needs. MicroStrategy's stock has been on a wild ride. Over the past year, its price return has surged well over 550%, far outpacing the S&P 500's double-digit gains. However, in the past week, the stock has dipped more than 8%, highlighting its volatility compared to broader market movements.
This article first appeared on GuruFocus.
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