MicroStrategy Stock: Bitcoin-Driven Growth Through Preferred Shares

MicroStrategy remains firmly in investors' spotlight following its announcement to strengthen its Bitcoin position through a significant financial maneuver. The NASDAQ-listed company, now primarily functioning as a Bitcoin-leverage investment vehicle, plans to issue 5 million shares of Series A preferred stock in a public offering. These preferred shares will carry a fixed cumulative dividend rate of 10% annually, with quarterly payments beginning in June 2025. The capital raised will fund "general corporate purposes," with the acquisition of additional Bitcoin holdings taking priority. This strategy has already yielded impressive results, with MicroStrategy delivering a remarkable 122% return over the past six months, reflecting strong investor confidence in its Bitcoin-focused approach. The company's market capitalization currently stands at approximately 76.6 billion euros.

Recent Bitcoin Acquisition Activity

Under the leadership of co-founder and Chairman Michael Saylor, MicroStrategy recently acquired additional Bitcoin worth $10.7 million, just one week after announcing its ambitious plan to raise up to $21 billion through preferred stock issuance for further Bitcoin purchases. The company's current Bitcoin holdings amount to approximately 499,226 Bitcoin, acquired at an average price of $66,360 per Bitcoin. In a notable recent transaction, MicroStrategy purchased an additional 20,356 Bitcoin for around $1.99 billion, financed through convertible bonds. While the stock recently experienced slight losses, trading at $294.27 (a 1.08% decline from the previous day), analysts interpret these fluctuations as a consolidation phase rather than an indicator of a deeper correction within the overall upward trend.

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Source StockWorld