# MicroStrategy Plans $350M Series A Preferred Stock Raise—10% Dividend Pays Quarterly

MicroStrategy (MSTR) is gearing up for a major funding move: selling 3.5 million shares of Series A Perpetual Preferred Stock, each priced at €100 (roughly $110 USD equivalent). The headline? A juicy 10% annual dividend paid quarterly, starting December 31.

Here's where it gets interesting—if dividends fall behind schedule, they compound and can spike up to 18% annually. That's the penalty clause kicking in.

The company plans to throw the raised capital toward buying more bitcoin and covering operational needs. It's a classic move: use preferred shares to fund your bitcoin stacking strategy without diluting common equity holders.

Market reaction was lukewarm overnight though. MSTR shares dipped 3.4% to $255.58, suggesting investors might be pricing in dilution concerns or pondering whether the dividend rate (10-18%) is worth the risk in a volatile market.

The broader play here: MicroStrategy continues its evolution from software company to bitcoin proxy, and now it's tapping the capital markets with a hybrid security that appeals to income-focused investors while fueling its accumulation strategy.