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

MicroStrategy CEO Michael Saylor announced the launch of convertible preferred shares STRK. The preferred shares 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, STRK preferred shareholders can convert their shares into MicroStrategy Class A common stock under certain conditions. The company will pay dividends quarterly starting from March 31, 2025, which can be paid in cash, Class A common stock, or a combination of both. When the total outstanding amount of the preferred shares is less than 25% of the total issued amount, MicroStrategy has the right to redeem all the preferred shares. This issuance is underwritten by Barclays, Moelis & Company, and other investment banks, and the proceeds will be used for general corporate purposes, including the purchase of Bitcoin and working capital.