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MicroStrategy Launches $2.8 Billion Bitcoin-Backed Preferred Stock Offering

MicroStrategy Launches $2.8 Billion Bitcoin-Backed Preferred Stock Offering

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by Giorgi Kostiuk

6 hours ago


MicroStrategy, led by Michael Saylor, has launched a new $2.8 billion fundraising offering backed by Bitcoin, generating significant interest from institutional investors.

Launch of MicroStrategy's Stock Offering

MicroStrategy unveiled a new preferred stock offering, initially intended to raise $500 million, which rapidly expanded to $2.8 billion due to strong investor demand. The upcoming stock structure offers a variable dividend rate of 9%, distributed monthly, and is backed by the company’s Bitcoin reserves.

Success and Growing Interest in the Offering

The expansion of the stock offering was accelerated by strong demand from institutional investors, making it more attractive. Shares were offered at $90 each, lowering the entry threshold for the market. The offering allows investors to gain exposure to Bitcoin income without direct ownership, serving as a convenient tool for those seeking stable returns.

Risks and Michael Saylor's Strategic Vision

While Michael Saylor remains confident in Bitcoin's future, analysts warn about risks associated with its volatility. A significant price drop could pressure the company's balance sheet. Nevertheless, large Bitcoin reserves offer a certain financial stability. Saylor emphasizes that "Bitcoin is engineered to preserve value," continuing efforts to accumulate digital assets.

MicroStrategy's $2.8 billion preferred stock offering represents an innovative tool that combines features of traditional finance with crypto assets. Under Michael Saylor's leadership, the company aims to accumulate more Bitcoins and increase its market share.

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