Key Takeaways:
- Strategy (formerly Microstrategy) prices 8.5M shares at $85 each
- Expected net proceeds of $711.2M for Bitcoin acquisitions
- 10.00% Series A Perpetual Strike Preferred Stock offering
- Settlement scheduled for March 25, 2025
In a significant move that signals growing institutional Bitcoin adoption, Strategy (NASDAQ: MSTR/STRK) has announced the pricing of its latest preferred stock offering, aimed at expanding its Bitcoin holdings. This development comes as institutional crypto investment continues to surge, with 83% of institutions planning to boost their portfolios in 2025.
The company, formerly known as Microstrategy, has priced 8.5 million shares of its 10.00% Series A Perpetual Strike Preferred Stock at $85 per share. After accounting for underwriting fees, Strategy expects to receive approximately $711.2 million in net proceeds, which will be primarily used for Bitcoin acquisitions.
Strategic Timing and Market Impact
This offering comes at a crucial time in the crypto market, as Bitcoin market indicators signal a bullish trend despite broader economic concerns. The settlement is scheduled for March 25, 2025, positioning Strategy to capitalize on current market conditions.
Institutional Bitcoin Adoption Trends
Strategy’s move represents one of the largest institutional Bitcoin investment initiatives of 2025, following a broader trend of corporate treasury diversification into digital assets. The offering’s structure, featuring a 10.00% dividend rate, provides investors with exposure to both traditional yield and Bitcoin’s potential appreciation.
FAQs
- Q: When will the stock offering settle?
A: The settlement is scheduled for March 25, 2025. - Q: How much will Strategy raise after fees?
A: The company expects net proceeds of approximately $711.2 million. - Q: What is the dividend rate?
A: The preferred stock offers a 10.00% dividend rate.
This development marks another milestone in Bitcoin’s institutional adoption journey, as major corporations continue to seek exposure to digital assets through various financial instruments.