TechFlow reports on January 27 that MicroStrategy CEO Michael Saylor announced the launch of convertible preferred stock STRK. The preferred shares will be offered to institutional investors and certain retail investors, with a planned issuance of 2.5 million shares, each carrying a liquidation preference of $100.
According to the announcement, holders of STRK preferred shares may convert their shares into MicroStrategy Class A common stock under specific conditions. The company will begin paying dividends quarterly starting March 31, 2025, which may be paid in cash, Class A common stock, or a combination thereof. When the outstanding amount of preferred stock falls below 25% of the initial issuance size, MicroStrategy has the right to redeem all remaining preferred shares.
The offering is being led by several investment banks including Barclays and Moelis & Company, with proceeds intended for general corporate purposes, including purchasing bitcoin and operating capital.
