MicroStrategy Inc. has announced plans to raise $2 billion through a preferred stock offering, a key step in the software company’s strategy to continue adding to its Bitcoin holdings aggressively. The news follows the company’s announcement of its broader 21/21 Plan, which envisions raising $42 billion over three years through a mix of financial instruments.
The company plans to issue perpetual preferred stock that takes senior to its class A common stock. We expect to complete a preferred stock offering in the first quarter of 2025. Final terms and pricing have not yet been determined, and the offering could feature such features as convertibility into class A common stock, cash payments of dividends, and share redemption provisions.
MicroStrategy Continues Aggressive Bitcoin Acquisitions Strategy
It’s another of a series of Bitcoin acquisitions that have become synonymous with MicroStrategy’s strategy under founder Michael Saylor. Throughout December 2024, the company continued to increase its Bitcoin holdings, making multiple high-value purchases:
- Dec. 30: 2,138 BTC at $97,837 per coin ($209 million)
- Dec. 23: 5,262 BTC at $106,662 per coin ($561 million)
- Dec. 16: 15,350 BTC at $100,386 per coin ($1.5 billion)
- Dec. 9: 21,550 BTC at $98,783 per coin ($2.1 billion)
- Dec. 2: 15,400 BTC at $95,976 per coin ($1.5 billion)
In other words, the MicroStrategy Bitcoin portfolio tracker now puts the firm’s estimated holdings of this coin at around 446,400 (44.6 Bitcoin), worth a total of $43.67 billion. Included in this list is this one, which would otherwise represent an unrealized gain of 56.78% ($15.82 billion) at an average cost of $62,396 per bitcoin, a far cry for the current price of $97,699.
Its latest capital-raising effort speaks to their adherence to its aggressive Bitcoin acquisition strategy. According to a press release from MicroStrategy, the proceeds from the offering are intended to ‘strengthen its balance sheet and acquire more Bitcoin.’
While Bitcoin is struggling to get past $100,000 just for now, now trading around 10% below its all-time high of $108,268 set on Dec. 17, 2024, the company has shown no trace of discouragement from their desire for increased Bitcoin exposure.
In fact, recent reports have indicated that MicroStrategy is continuing to invest in Bitcoin, with Head of Business Intelligence, Brandon Hickman, stating that Bitcoin has become the cornerstone of MicroStrategy’s long-term financial strategy.
