MicroStrategy pushes on perpetual bonds as the “Bitcoin premium” falls

MicroStrategy (MSTR) eases self-imposed limits on common stock sales and accelerates a plan for financing with perpetual securities. The decision comes as the Bitcoin-related premium on the stock price narrows, with the declared goal of strengthening the treasury in BTC without affecting operational liquidity.

According to the data collected by our research team, cross-referenced with SEC filings, the initial pricing of the Serie A STRK and the ATM of $21 billion are confirmed by the documents filed at the end of January 2025. The industry analysts we collaborate with note that the operation aims to preserve the treasury in BTC by avoiding spot sales, while increasing the average cost of capital per share.

MicroStrategy: what changes in the capital plan

The company led by Michael Saylor had previously limited the issuance of common shares to preserve the implicit premium connected to its position in Bitcoin.

Between July and August, however, the scope of emissions was expanded (also through ATM programs) to support the new capital architecture and provide continuity to the strategy in BTC official release. To delve deeper into the use of Bitcoin in the balance sheet, see our internal guide: Bitcoin in corporate treasury.

Why now: the issue of the “Bitcoin premium” on MSTR

The MSTR stock has historically incorporated a premium compared to the value of BTC held per share, effectively becoming a market proxy. With the premium contracting, the window to finance growth and new BTC purchases through pure equity tends to narrow. 

In this context, titoli perpetui offer a way to raise capital without excessively expanding the float of the ordinary shares. For a glossary of ATM mechanisms see: ATM program.

How perpetual preferred stocks work

Perpetual preferred stocks are equity instruments without maturity, with a fixed or variable dividend and priority of distribution compared to ordinary ones. They do not provide for a term redemption and generally do not grant full voting rights. It should be noted that the coupons can be deferred at the discretion of the issuer, within the limits established by the prospectus. For a guide on preferred stock, consult our dedicated resource: Preferred stocks: characteristics and risks.

Official term sheet: the key data of Serie A “Strike”

• Instrument: 8.00% Series A Perpetual Strike Preferred Stock (ticker STRK)
• Initial issuance amount: 7.3 million shares at $80 each (≈ $584M gross)
• Dividend: 8% fixed, cumulative, payable quarterly if declared by the Board of Directors
• Voting rights: limited; full rights only in case of non-payment of dividends for 6 periods
• Priority: preference on dividends and liquidation compared to ordinary ones
• Conversion: not convertible into ordinary shares
• Use of proceeds: additional purchases of Bitcoin and general corporate needs
• Filing SEC: prospectus S-1 no. 333-279014 filed on January 29, 2025 (pricing 8-K of January 31, 2025)

Impact on treasury, cash flows, and NAV

Thanks to preferiti perpetui, MicroStrategy aims to avoid the liquidazione di BTC to cover current expenses by accessing venture capital, which, however, involves annual coupons of ≈ $46.7M (8% on $584M). An interesting aspect is that the dilutive impact on the NAV per ordinary share remains contained; however, there remains a higher cost of capital compared to ordinary issuances made when the premium on MSTR was higher. The key numbers and dates mentioned are updated as of August 1, 2025, and can be verified in SEC filings and company announcements.

Expected effects on the reduction of common stock sales

With the introduction of STRK and the dedicated at-the-market program, the company aims to reduce the pressure on the ordinary shares, using them more selectively. In parallel, secured credit lines in BTC remain operational, and a zero dividend policy on common shares is maintained to preserve financial flexibility.

Risk Framework: market, credit, perception

• Bitcoin Volatility: strong BTC drawdowns can reduce the hedge value for coupons.
• Credit risk: the deferral of dividends penalizes the reputation in the preferential market.
• Cost of capital: the fixed 8% is burdensome in case of rate normalization.
• Perception of leverage: the market might consider the structure as additional “economic” leverage.
• Secondary liquidity: a potential discount of STRK on the secondary market can increase the effective cost of financing.

Reactions and market reading

The initial analyses by Fortune and Yahoo Finance indicate a cautious-positive approach to greater financial flexibility, counterbalanced by doubts about coupon costs and exposure to BTC. It should be noted that some analysts describe STRK as part of a “credit model anchored to Bitcoin” that allows the strategy to continue without forced sales of crypto-assets. For the official statement from the issuer and investor relations updates: Strategy Investor Relations.

What to monitor in the coming months

• Any new series of favorites (STRD, STRF) and related economic terms.
• Trend of the premium on MSTR compared to the NAV BTC per share.
• Investor demand in the ATM of $21 billion and STRK performance on the secondary market.
• Purchases/sales of BTC in treasury and impact on operating cash flows.

Context and related resources

• All the news about MicroStrategy
• Guide: Bitcoin in corporate treasury
• Bitcoin price analysis

Note on sources and data

The information comes from SEC documents, official MicroStrategy releases, and financial news agencies. For detailed checks, refer to the S‑1/8‑K filing and the documentation filed on SEC EDGAR: SEC EDGAR — Filing S‑1 no. 333-279014, as well as the releases published on Strategy Investor Relations. Any additional details (e.g., net yield post-commissions, conversion plans, or future series of preferred) will be integrated after the publication of new filings (update: August 1, 2025).