MicroStrategy To Raise $563M To Buy More Bitcoin, MSTR Stock Rebounds

Michael Saylor’s MicroStrategy plans to raise $563 million from its STRK preferred stock offering. This development is significant as it forms part of the software company’s plans to acquire more Bitcoin.

MicroStrategy To Raise $563 Million From STRK Offering

MicroStrategy estimates it will raise $563 million from its STRK offering. This came following a press release in which the company announced the pricing of its offering of 7.3 million shares of its Perpetual Strike Preferred Stock (STRK) at a public offering price of $80 per share. The company also revealed that the issuance and sale of the STRK stocks will take place on February 5, 2025, subject to customary closing conditions.

Based on the STRK pricing, MicroStrategy estimates that the net proceeds from the offering will be approximately $563.4 million after deducting the underwriting discounts and commissions and the company’s offering expenses. The company also mentioned that it intends to use the net proceeds from the offering to acquire more Bitcoin and for other general corporate purposes.

Saylor’s company has been on a hot streak since the start of last year, acquiring BTC for twelve consecutive weeks and counting. The company announced this week that it had purchased 10,107 BTC for $1.1 billion.

It is also worth mentioning that the company is still likely to raise more share capital to buy more BTC as its shareholders recently voted in favor of a proposal to issue more shares.

MSTR Stock Rebounds

MicroStrategy’s stock has rebounded following the company’s announcement of the pricing of its STRK offering. Nasdaq data shows that the MSTR stock price is currently in the green in intra-day trading, trading at around $340.

The stock has rebounded since the start of the year and currently boasts a year-to-date (YTD) gain of 17%. Meanwhile, the Bitcoin price failed to react to this development, as it is still trading below the crucial $105,000 support level.