MicroStrategy has filed a preliminary prospectus with the SEC to offer up to $500 million of perpetual preferred stock. Each share will carry a 6.125% fixed annual dividend and may be converted into Class A common shares at $1,700 per share.

Proceeds from the offering are earmarked for general corporate purposes, most notably additional Bitcoin purchases to expand the company's digital asset holdings and support its balance sheet strategy.

The issuance could dilute existing shareholders over time if holders convert preferred shares into common stock, while the fixed dividend obligation will increase financial leverage and interest costs.