The company MicroStrategy intends to offer 2.5 million perpetual preferred shares to finance its corporate necessities along with additional Bitcoin procurement. The business intelligence firm disclosed its Bitcoin-oriented services expansion through an offering announcement on January 27.
The issued preferred stock would maintain a $100 per share liquidation value while starting quarterly dividend payments on March 31 according to the company’s announcement. The stockholders who own these shares will receive the right to exchange them for common stock shares.
Bitcoin Holdings Drive Profitability
According to the company statement “MicroStrategy intends to use the net proceeds from the offering for general corporate purposes and to acquire Bitcoin and boost its working capital.” The business decision to extend its Bitcoin holding accumulation represents MicroStrategy’s accelerated expansion measures.
MicroStrategy purchased another $1.1 billion worth of BTC during the previous week to reach a total BTC holding of 471,107. Under its “21/21 Plan” MicroStrategy has doubled down on acquisitions by issuing $42 billion worth of equity securities and fixed-income instruments to grow its BTC holdings.
MicroStrategy adopted a BTC accumulation strategy although its core business operations have encountered persistent challenges. For its fiscal third quarter MicroStrategy showed revenue at a 10.3% annual decrease accompanied by an 79.4% to 70.4% drop in gross profit margins. The newly developed performance metric revealed BTC generated a 5.1% profit for the firm.
In November MicroStrategy conducted its largest BTC acquisition by purchasing 55,000 BTC worth approximately $5.4 billion. Before Donald Trump became president the company purchased 11,000 BTC at $101,191 each on average. As BTC miners adopt new strategies they are choosing to hold their mining output versus engaging in traditional selling behaviors.
On January 7 Digital Mining Solutions and BitcoinMiningStock published an industry report observing this evolving market trend. Recent market trends indicate that more public companies are following MicroStrategy’s lead by purchasing BTC with Semler Scientific leading the way alongside KULR Technology and Metaplanet.
MicroStrategy continues its Bitcoin-focused business strategy by making this new investment which positions the company as a major institutional player in the cryptocurrency marketplace.
