MicroStrategy Plans $2 Billion Preferred Stock Issuance
- MicroStrategy aims to raise up to $2 billion by issuing perpetual preferred stock in Q1 2025.
- The issuance is part of the company’s “21/21” plan to sell $42 billion in equity and fixed-income securities.
- Perpetual preferred stock offers fixed dividends indefinitely and is senior to Class A common stock.
- Michael Saylor, Executive Chairman, highlighted the investment’s levered exposure to bitcoin with returns and volatility at 1.5x bitcoin levels.
- Benchmark rates MSTR stock as a “buy” with a target price of $650; current price is $357.75, up 4.5%.
MicroStrategy plans to issue perpetual preferred stock worth up to $2 billion, offering investors significant exposure to bitcoin’s volatility and returns. This move aligns with their broader strategy to raise substantial capital through equity and fixed-income securities.
