MicroStrategy, the business intelligence company, is raising a whopping $563.4 million through a new stock offering. The plan? A big chunk of that cash is earmarked for buying even more Bitcoin.
Funding Bitcoin Purchases
The company is selling preferred stock at $80 per share. Besides buying more Bitcoin, the funds will also cover general expenses and working capital. This type of stock offering lets MicroStrategy raise money without diluting its voting power, and it offers investors a potentially higher, steadier return. The preferred stock will pay an annual dividend of 8%, and holders can convert their shares into MicroStrategy’s common stock.
Shareholder Approval and Bitcoin Holdings
Earlier this month, MicroStrategy shareholders approved a significant increase in the number of authorized shares— paving the way for this latest funding round. The company currently holds a massive 471,107 Bitcoin, worth over $48 billion at current prices.
Market Conditions
At the time of writing, Bitcoin is trading around $102,002, down slightly for the day. MicroStrategy’s stock is also down slightly.
Disclaimer: This information is for general knowledge only and is not financial advice. Investing in Bitcoin and other cryptocurrencies is risky. Always do your own research before making any investment decisions.
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