MicroStrategy, known for holding the largest corporate stash of Bitcoin, is preparing to raise close to $1 billion through a new stock issuance—aimed largely at expanding its BTC holdings.
The firm, chaired by Michael Saylor, revealed plans to offer 11,764,700 shares of its new 10.00% Series A Perpetual Preferred Stock, priced at $85 per share.
According to the announcement made on June 6, MicroStrategy expects to net around $979.7 million after factoring in underwriting fees and offering-related expenses.
The proceeds will be used for “general corporate purposes,” with a strong emphasis on acquiring more Bitcoin and maintaining working capital.
This marks a significant shift from its earlier fundraising strategy, expanding its previously announced $250 million raise and introducing preferred shares as a new financing instrument—beyond its traditional reliance on common equity and convertible notes.
These preferred shares offer a 10% annual dividend (non-cumulative) to institutional investors, presenting a new way for them to gain exposure to the company’s Bitcoin strategy.
At Bitcoin’s current trading price of roughly $103,800, the new capital could allow MicroStrategy to acquire around 9,633 BTC—far more than its June 2 purchase of 705 BTC for $75.1 million.
MicroStrategy Stock Trades at a High Premium
According to a recent report by asset manager VanEck, MicroStrategy’s stock is trading at a premium exceeding 112% over the combined value of its Bitcoin holdings and software business.
VanEck attributes this surge to market expectations around future BTC accumulation, favorable regulatory positioning, and speculative investor interest.
Markus Thielen, CEO of 10x Research, commented that the company’s ability to issue shares at a much higher price than the value of underlying Bitcoin lets MicroStrategy effectively turn that spread into what he described as a form of “Bitcoin yield.”
Still, MicroStrategy’s premium looks modest next to Japanese firm Metaplanet, whose Bitcoin-linked stock premium reached over $596,000 on May 27—more than five times the value of its BTC per share.
10x Research warned that investors unaware of a company’s actual net asset value (NAV) might be drastically overpaying for indirect Bitcoin exposure, without necessarily gaining added upside from the stock’s performance.
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