MicroStrategy has filed with the US Securities and Exchange Commission (SEC) to offer $500 million in preferred stock, intending to use the proceeds to acquire additional Bitcoin. The company, now rebranded as Strategy, plans to sell 5 million shares of its 10.00% Series A Perpetual Strife Preferred Stock, each valued at $100, totaling $500 million. The firm outlined that the raised funds would support general corporate purposes, including further Bitcoin purchases and operational capital.
The filing comes just days after MicroStrategy announced the acquisition of 130 BTC for $10.7 million at an average price of $82,981 per Bitcoin, bringing its total Bitcoin holdings to 499,226 BTC, purchased at an average cost of $66,360 per BTC. The company also acknowledged the risks of Bitcoin price fluctuations, noting that future market downturns could lead to realized losses if the purchased Bitcoin is converted into cash at a lower value.
Despite MicroStrategy’s ongoing Bitcoin accumulation strategy, its stock (MSTR) continues to decline. Nasdaq data indicates that MSTR shares have dropped over 23% in the past three months. The stock is currently trading at around $283, marking a more than 3% dip in pre-market trading from its previous close at $294.
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