MicroStrategy said on Friday that it is targeting a capital raise of up to $2 billion through one or more public underwritten offerings of perpetual preferred stock, which will be senior to its class A common stock.
The perpetual preferred stock may include features such as (i) convertibility to its class A common stock, (ii) payment of cash dividends, and (iii) provisions allowing for redemptions of shares, among other features.
The number of depositary shares representing an interest in the perpetual preferred stock to be offered, the final terms of the perpetual preferred stock, and the price for the offering have not yet been determined.
The purpose of the offering is to allow MicroStrategy to continue to strengthen its balance sheet and acquire more bitcoin.
The offering is expected to occur, if at all, in the first quarter of 2025.