Strategy Announces Offering Of 5 Mln Preferred Stock

(RTTNews) - MicroStrategy Inc. (MSTR) Tuesday announced plans to offer 5 million shares of its Series A Perpetual Strife Preferred Stock in a public offering.

Proceeds from the sale will be used for general corporate purposes, including acquiring bitcoin and funding working capital.

The preferred stock carries a fixed annual dividend rate of 10 percent, payable quarterly. If dividends remain unpaid, they will accumulate at an increasing rate, up to a maximum of 18 percent per year.

The company reserves the right to redeem all shares under certain conditions, including if outstanding shares fall below 25 percent of the original issuance or in the event of specific tax changes.

If a fundamental change occurs, shareholders may require Strategy to repurchase their shares at the stated amount plus unpaid dividends.

MSTR is currently trading at $274.61, down $19.65 or 6.68 percent on the Nasdaq.