CandleFocus

MicroStrategy Targeting $2B Perpetual Preferred Stock Offering: Benchmark

MicroStrategy plans to raise $2 billion through one or multiple offerings in order to buy more Bitcoin. The company has used various methods to acquire Bitcoin, including cash on hand, at-the-market offerings, and convertible bond offerings. The new method of raising capital will involve buying Bitcoin through perpetual preferred stock. Perpetual preferred stock is attractive due to its lack of a fixed maturity date and the potential for fixed dividend payments. This offering could be appealing to big institutions like pension funds and banks. The terms of the offering have yet to be announced, but it is expected to take place in Q1. MicroStrategy recently purchased an additional 2,530 BTC, bringing its total holdings to 450,000 BTC.

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