MicroStrategy launches convertible preferred stock STRK, and the funds raised will be used to purchase Bitcoin

ChainCatcher news, MicroStrategy CEO Michael Saylor announced the launch of convertible preferred stock STRK. This preferred stock will be issued to institutional investors and certain retail investors, with a planned issuance of 2.5 million shares, each with a liquidation preference of $100.

According to the announcement, holders of STRK preferred stock may convert their shares into MicroStrategy Class A common stock under certain conditions. The company will pay dividends quarterly starting March 31, 2025, with the option to pay in cash, Class A common stock, or a combination of both. MicroStrategy has the right to redeem all preferred stock when the total outstanding amount is less than 25% of the total issued amount.

This issuance is led by several investment banks including Barclays and Moelis & Company, and the raised funds will be used for general corporate purposes, including the purchase of Bitcoin and operating capital.