• MicroStrategy filed Form S-3 to raise funds for expanding its Bitcoin holdings and corporate needs.
  • The company introduced convertible preferred stock to attract investors seeking Bitcoin exposure with reduced volatility.

On January 27, 2025, MicroStrategy officially filed a Form S-3 with the Securities and Exchange Commission (SEC) of the United States. This phase represents the company’s new approach to funding using several financial instruments.

Expanding their Bitcoin holdings while attending to other corporate needs is their major objective. MicroStrategy revealed intentions in the form to issue bonds, Class A common stock, preferred shares, depositary receipts, warrants, and hybrid security units.

This strategy highlights MicroStrategy’s leadership in corporate-level use of Bitcoin. This approach also gives a clear indication that the business is hopeful about the long-term possibilities of Bitcoin as an investing vehicle.

MicroStrategy Files Form S-3 to Boost Bitcoin Portfolio image 0 MicroStrategy Files Form S-3 to Boost Bitcoin Portfolio image 1 Source: SEC

Strike Preferred Stock: A Strategic Move to Attract Investors 

Fascinatingly, one of the announced actions was the introduction of “Strike Preferred Stock,” a new convertible preferred stock under ticker STRK. These shares have an attractive yield of 8% and a start price of $100 per unit. MicroStrategy further said that, at a value of $1,000 per unit, the preferred shares might be turned into common shares, well above the present stock price of the company.

This action is meant to draw in investors, particularly those who wish to participate in Bitcoin-based investments yet wish for reduced volatility. Both individual and institutional investors find the preferred shares appealing since they offer greater consistency than purchasing Bitcoin straightforwardly.

MicroStrategy Expands Bitcoin Holdings with New Acquisition

Apart from the scheduled release of securities, as we previously reported , MicroStrategy also revealed the addition of 10,107 BTC to its portfolio during last week. The total investment spent for this purchase reached $1.1 billion, with an average price of $105,596 per coin.

Currently, believed to have more than 470,000 BTC, MicroStrategy is among the biggest Bitcoin holders in the world. This accumulation approach reveals their conviction on Bitcoin’s long-term viability as a store of value and inflation hedge.

As of press time, the Bitcoin (BTC) price is swapped hands at about $102,975.92, up 2.81% over the last 24 hours with a market cap of $2.04 trillion. And on the weekly chart, the coin is up by 1.63%.

Recommended for you: