The shares, the first preferred stock issue by the largest corporate holder of Bitcoin, didn’t get as strong a reception as the company planned.

MicroStrategy (NASDAQ: MSTR) has priced its offering of 7.3M shares of 8.00% Series A Perpetual Strike Preferred at $80.00 per share. The issuance and sale of the perpetual strike preferred stock are scheduled to settle on February 5, 2025, subject to customary closing conditions.

MicroStrategy issued 7.3 million shares of 8.00% perpetual preferred stock at $80 per share, expected to bring in $563.4 million for general purposes, including Bitcoin purchases. Conversion and redemption rights apply.

MicroStrategy Inc. has raised $563 million through a debt-like equity offering to help finance its purchase of more Bitcoin.

Disclaimer: The analyst who wrote this piece owns shares of MicroStrategy (MSTR). MicroStrategy's (MSTR) initial attempt to expand its capital raising activities via perpetual preferred stock appeared to have been met with strong demand.

MicroStrategy Inc. has secured $563 million through a new equity financing structure aimed at expanding its Bitcoin (BTC) holdings.

The largest of the U.S. preferred stock ETFs is the BlackRock iShares Preferred and Income Securities ETF (PFF), which has roughly $15 billion in assets under management. The largest holders of PFF ETF are major corporations such as Boeing (BA), Wells Fargo (WFC) and Citi Group (C).

MicroStrategy has announced the pricing of its strike preferred stock offering as the company continues to finance Bitcoin through corporate debt.

Bitcoin investor MicroStrategy’s $250 million preferred-stock offering may price at a discount to its face value of $100 per share due to apparent insufficient demand for the deal.