On February 5 MicroStrategy plans to issue preferred stock at $80 per share according to what the company just disclosed. This financing round will generate $563.4 million for MicroStrategy and use those funds to buy more Bitcoin under an 8% interest payment schedule with a $100 per share cash value when the deal ends.
The company explains that it will buy more Bitcoin and pay daily operations with the funds raised through the stock sale. MicroStrategy keeps advancing with its “21/21” strategy through issuing $21 billion worth of investment products to buy Bitcoin.
Bitcoin Holdings Keep Growing
On January 27 Michael Saylor revealed that MicroStrategy purchased 10,107 BTC for $1.1 billion. According to SaylorTracker the company currently controls 471,107 BTC worth $49.4 billion and showing $19 billion in unrealized growth. The business continues to collect more Bitcoin as its status as the biggest corporate Bitcoin owner remains undisputed.
On January 24 MicroStrategy revealed it would repurchase its 2027 Senior Convertible Notes worth $1.05 billion. Investors with MicroStrategy notes have one month after February 24 to opt for their full face value of $1.05 billion or exchange them for MicroStrategy stock.
MicroStrategy and Coinbase ask the IRS to change the Corporate Alternative Minimum Tax through a shared plea. Pursuant to tax regulation the 15% tax applies to firms earning more than $1 billion over three years based on their financial statement results. Companies say the tax rule can wrongly tax them when they hold digital assets without selling them but keep full profits.
In its tax resolution letter MicroStrategy explains that if the IRS does not change the rule it must pay taxes despite holding its Bitcoin assets intact. The company urges government officials to modify current regulations which would stop taxing unrealized profits and losses on fair-value asset holdings.
