MicroStrategy Eyes More Bitcoin With $2B Preferred Stock Offering
Microstrategy, Bitcoin's largest corporate owner, is expecting to raise $2 billion from a perpetual preferred stock offering to buy more bitcoin in an expansion of the company's “21/21” plan.
The perpetual preferred stock can be acquired by converting the microstrategy unit to a single share of common stock, paying cash, redeeming shares or a combination of these, the Bitcoin-stacking business intelligence firm said in a Jan. 3 statement.
Source: Michael Saylor
The offering is separate from MicroStrategy's ongoing plan to raise $21 billion in equity and fixed-income instruments, a strategy it has been implementing in recent months to accelerate the process of buying Bitcoin through high-yield convertible notes and debt.
MicroStrategy's intention to bolster its balance sheet and buy more Bitcoin (BTC) is expected to take place later this quarter with a perpetual preferred stock offering.
“However, the decision to continue and execute the offering is at MicroStrategy's sole discretion and is subject to market and other conditions,” MicroStrategy explained.
“MicroStrategy may choose not to proceed or not to complete the offer.”
A perpetual preferred stock offering is also a “senior” class of microstrategy, as common stock is given priority to holders in the event of bankruptcy or liquidation.
MicroStrategy has 446,400 bitcoins worth $43.9 billion, according to Bitcoin Treasuries.
In the year It bought 257,250 bitcoins in 2024 alone — the company's biggest bitcoin purchase year.
446,400 Bitcoins were bought at a dollar cost average of 62,500, which means that MicroStrategy is up 57.2% on its Bitcoin investment.
The firm's Bitcoin investment strategy was devised by Executive Chairman Michael Saylor, who played a key role in paving the way for corporate Bitcoin adoption around the world.
Saylor's Bitcoin strategy benefited heavily from shares of MicroStrategy ( MSTR ), which rose 13.2% to $339.6 on Jan. 3 — up 438% from last year.
MSTR fell a little 0.19% after MicroStrategy's perpetual preferred stock offering plan was announced after hours.
MSTR share price change on January 3, including after-hours. Source: Google Finance
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