MicroStrategy is planning a $2 billion perpetual preferred stock offering, with terms to be announced in Q1 2025. Executive chairman Michael Saylor highlighted the strategic shift to raising capital through this method during a recent investor meeting. Perpetual preferred stock has no maturity date, provides fixed dividends, and gives shareholders no voting rights, making it appealing to institutional investors like pension funds. The offering is viewed favorably due to its stability and potential mid-single-digit yield compared to convertible bonds, which have a set maturity. MicroStrategy has been acquiring bitcoin since August 2020 using various funding methods, and this perpetual preferred stock offering marks a new strategy to increase its bitcoin holdings. Benchmark maintains its buy rating for MicroStrategy's stock with a price target of $650. The company also recently increased its bitcoin holdings to 450,000 BTC, preparing for a shareholder meeting where they will vote on increasing class A common and preferred stock authorization, alongside an upcoming Q4 earnings call.

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