MicroStrategy, the leading corporate Bitcoin holder, is considering raising up to $2 billion through a perpetual preferred stock offering to expand its Bitcoin reserves. This plan builds upon the company’s aggressive Bitcoin acquisition strategy known as the “21/21” initiative.
Details of the Offering
In a Jan. 3 announcement, the business intelligence firm explained that the offering could involve converting its Class A common stock, paying cash dividends, redeeming shares, or a mix of these methods. While the proceeds are primarily aimed at purchasing more Bitcoin, MicroStrategy also plans to use the funds to strengthen its financial position.
This offering is distinct from the company’s ongoing efforts to raise $21 billion through a combination of equity and fixed-income instruments, which it has leveraged in recent months to fund its Bitcoin purchases through convertible notes and debt.
However, the company clarified that the stock offering is subject to market conditions and may not proceed if circumstances are unfavorable. “MicroStrategy may choose not to proceed with or consummate the offering at all,” it stated.
The perpetual preferred stock offers advantages to investors, as it is “senior” to MicroStrategy’s Class A common stock, meaning holders have a higher claim in case of bankruptcy or liquidation.
MicroStrategy’s Bitcoin Holdings and Strategy
As of now, MicroStrategy owns a staggering 446,400 Bitcoin, valued at $43.9 billion, according to Bitcoin Treasuries. The company acquired 257,250 Bitcoin in 2024 alone, marking its biggest year of Bitcoin purchases to date.
The firm’s average purchase price for its Bitcoin holdings is $62,500 per Bitcoin, with an impressive 57.2% gain on its investment.
This aggressive Bitcoin acquisition strategy has been championed by MicroStrategy’s executive chairman, Michael Saylor. His efforts have not only made the company a trailblazer in corporate Bitcoin adoption but also significantly boosted its stock value.
MicroStrategy (MSTR) shares surged 13.2% on Jan. 3, reaching $339.60 — an incredible 438% increase compared to the same time last year. However, after the perpetual preferred stock offering announcement, MSTR shares dipped slightly by 0.19% in after-hours trading.
