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MicroStrategy (MSTR) announced the pricing of its offering on January 30 of 7.3M shares of 8.00% series A perpetual strike preferred stock at a public offering price of $80.00 per share. The issuance and sale of the perpetual strike preferred stock are scheduled to settle on February 5. MicroStrategy estimates that the net proceeds to it from the offering will be approximately $563.4M. MicroStrategy intends to use the net proceeds from the offering for general corporate purposes, including the acquisition of bitcoin and for working capital. Holders of the perpetual strike preferred stock will have the right to convert their shares of perpetual strike preferred stock on any business day into shares of MicroStrategy at the then-applicable conversion rate. The initial conversion rate is 0.1000 shares of MicroStrategy’s class A common stock per share of perpetual strike preferred stock, which represents an initial conversion price of $1,000.00 per share of MicroStrategy. Barclays, Moelis, BTIG, TD Cowen and Keefe, Bruyette & Wood are acting as joint book-running managers for the offering. AmeriVet, Bancroft Capital and Benchmark are acting as co-managers for the offering.
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