Microstrategy offers 2.5 million shares to support Bitcoin purchases
Business intelligence firm MicroStrategy has proposed a stock offering, including acquiring more bitcoins (BTC) for “general corporate purposes,” signaling its desire to continue amassing digital assets.
According to a Jan. 27 announcement, MicroStrategy plans to offer 2.5 million units of perpetual strike preferred stock, which is a type of stock that has liquid options and pays a fixed fee. Holders also have the option to convert to common stock.
According to MicroStrategy, the offering will have liquidation options at $100 per share. Dividends are paid quarterly starting March 31.
“MicroStrategy intends to use the net proceeds from the offering for general corporate purposes, including the purchase of bitcoins and working capital,” the company said.
In its announcement, MicroStrategy describes itself as “the world's first and largest Bitcoin treasury company,” indicating that business intelligence software is not its core business.
In the third quarter, the company's revenue fell 10.3 percent year over year to $116.1 million. Gross profit margin fell to 70.4% for the third quarter of 2023 from 79.4%.
However, MicroStrategy said it had achieved a 5.1% Bitcoin yield, a new performance measure for its crypto holdings.
Related: Saylor floats US crypto framework with $81T Bitcoin backup plan
BTC purchases are increasing
MicroStrategy has stepped up its bitcoin buying after announcing plans to raise $42 billion for its digital asset war chest. The so-called “21/21 Plan” consists of $21 billion in equity and $21 billion in fixed income securities.
The company made one of its biggest purchases during the inauguration of US President Donald Trump, snapping up 11,000 BTC at an average price of $101,191.
Source: Michael Saylor
MicroStrategy's largest BTC purchase was in November when it acquired 55,000 coins for $5.4 billion.
Elsewhere, bitcoin miners appear to be taking a page from the microstrategy playbook by building their own digital asset inventory.
According to a January 7 report by Digital Mining Solutions and Bitcoin Mining Stocks, “In 2024, a major shift occurred between Bitcoin Mining Stocks.
Other public companies have added bitcoin to their balance sheets, including Semler Scientific, KULR Technology and Metaplanet.
Related: Bitcoin Corporate Treasury Shareholder Proposal Submitted For Meta
