MicroStrategy to Raise $2 Billion Through Preferred Stock Offering

MicroStrategy revealed its intention to raise $2 billion through a preferred stock offering, signaling a significant step in further boosting its Bitcoin acquisition strategy.

This initiative is part of MicroStrategy’s 21/21 Plan, which targets raising $42 billion through a range of financial instruments over the next three years.

The company, based in Tysons Corner, Virginia, intends to issue perpetual preferred stock, which will take precedence over its Class A common stock. The offering, expected in the first quarter of 2025, may feature convertibility into Class A common stock, cash dividends, and share redemption options. The final terms and pricing are yet to be determined.

As of the latest data from the MicroStrategy Bitcoin portfolio tracker, the company now holds approximately 446,400 BTC, valued at $43.67 billion. This marks an all-time unrealized gain of 56.78%, equating to $15.82 billion in profit on its investment. MicroStrategy plans to use the proceeds to “strengthen its balance sheet and acquire more Bitcoin,” as stated in the press release.

MicroStrategy continued its aggressive Bitcoin (BTC) acquisition strategy throughout 2024, announcing the purchase of an additional 2,138 BTC for $209 million. The cryptocurrency was acquired at an average price of $97,837 per Bitcoin, marking the eighth consecutive week of acquisitions. With this purchase, MicroStrategy’s total holdings grew to 446,400 BTC, representing an investment of $27.9 billion, at an average acquisition price of $62,428 per Bitcoin.

Meanwhile, Japanese investment firm Metaplanet made its largest Bitcoin acquisition to date, purchasing 619.7 BTC for just under $60 million. This purchase, disclosed on December 23, nearly quadrupled its previous record acquisition of 159.7 BTC in October. As a result of its aggressive Bitcoin buying strategy, Metaplanet earned the moniker “Asia’s MicroStrategy.” The firm now holds 1,762 BTC, valued at approximately $168 million, with an average purchase price of $75,600 per BTC. This makes Metaplanet the 12th-largest public corporate Bitcoin holder globally, just behind Semler Scientific.

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