MicroStrategy, one of the world’s biggest corporate Bitcoin holders, announced plans to raise $2 billion through a perpetual preferred stock offering. These funds will be used to purchase additional cryptocurrency in line with its ambitious “21/21” strategy.
MicroStrategy’s plan is to issue perpetual preferred stock through various strategies – conversion of its class A common stock into perpetual preferred, cash dividends paid on existing shares redeemed, or redemption of all outstanding shares at face value – in order to strengthen its balance sheet and accelerate Bitcoin accumulation strategies.
Michael Saylor, Executive Chairman and Co-Founder of MicroStrategy has long championed Bitcoin as a foundational element of corporate investment. Under his guidance, MicroStrategy pioneered its adoption among major corporations as a model to be followed.
MicroStrategy’s “21/21 Plan”
MicroStrategy has set its sights on raising $21 billion through equity and another $21 billion via fixed-income instruments, in order to support sustained Bitcoin acquisitions. As part of this plan, they plan to launch the perpetual preferred stock offering around Q1 2025 depending on market conditions and company discretion.
This preferred stock offering holds a privileged status within a company’s structure, providing investors with additional security in case of liquidation or bankruptcy proceedings. Holders will receive priority, offering additional peace of mind.
MicroStrategy Has Reached $43.9 Billions
MicroStrategy currently owns 446,400 BTC valued at $43.9 billion – making them the largest Bitcoin reserve among corporations. In 2024 alone, they added 257,250 BTC making 2024 their record year for acquisitions with an average purchase price of $62,500 making their investment rise 57.2% year over year.
MicroStrategy’s Stock The announcement of MicroStrategy (MSTR)’s preferred stock offering has had mixed effects on its shares. On January 3, shares increased 13.2% year-over-year to reach $339.6, marking an unprecedented 438% surge. Afterward, trading dropped slightly by 0.19% post announcement of their new fundraising plan.
Michael Saylor’s bold Bitcoin strategy continues to cement MicroStrategy’s position as a pioneer of corporate bitcoin adoption, while an anticipated stock offering may further solidify their presence within the cryptocurrency space as well as strengthen their financial foundation for future expansion.
