- MicroStrategy plans to raise $2 billion via perpetual preferred stock to boost Bitcoin holdings as part of its “21/21” strategy.
- As of January 2025, MicroStrategy holds 446,400 Bitcoins valued at approximately $43.9 billion, reflecting a 57.2% gain.
- MicroStrategy’s stock surged 13.2% to $339.6 on January 3, a 438% increase from the previous year.
MicroStrategy, the leading corporate holder of Bitcoin, has announced plans to raise $2 billion through a perpetual preferred stock offering to bolster its Bitcoin reserves. The move aligns with the company’s ambitious “21/21” plan, which involves raising $21 billion in equity and $21 billion in fixed-income instruments to support its Bitcoin acquisition strategy.
The business intelligence firm clarified in a January 3 statement that the perpetual preferred stock could be acquired by converting its Class A common stock, paying a cash dividend, redeeming shares, or combining these methods. The offering is set to launch in Q1 2025, though its implementation depends on market conditions and the company’s discretion.
MicroStrategy’s Bitcoin Holdings Surge to $43.9 Billion
MicroStrategy has consistently employed innovative financial strategies to fund its BTC purchases. Over recent years, it has raised capital through equity and debt offerings, including a $3 billion debt issuance in November 2024. The latest perpetual preferred stock offering is another step in its long-term goal of strengthening its balance sheet and expanding its cryptocurrency holdings.
According to Bitcoin Treasuries data, MicroStrategy holds an impressive 446,400 Bitcoins valued at approximately $43.9 billion. In 2024, the firm added 257,250 BTC to its reserves, marking its most aggressive buying spree yet. Purchased at an average price of $62,500 per BTC, the firm’s holdings have yielded a 57.2% gain.
Michael Saylor, the company’s executive chairman and co-founder, has successfully championed this Bitcoin-centric strategy. His approach has set a precedent for corporate BTC adoption globally, earning MicroStrategy a leading position in the cryptocurrency market.
MicroStrategy’s Aggressive Bitcoin Strategy Drives Stock Performance
MicroStrategy has previously used a mix of debt and equity offerings to fund BTC purchases. In November 2024, the firm completed a $3 billion debt offering for the same purpose. As of December 15, it had $7.65 billion worth of shares available for sale to support its 21/21 plan further.
Saylor’s Bitcoin-focused vision has also bolstered MicroStrategy’s stock performance. On January 3, MSTR shares surged 13.2% to $339.6, a staggering 438% increase from last year. However, shares dipped slightly by 0.19% in after-hours trading following the announcement of the preferred stock offering.
MicroStrategy’s aggressive Bitcoin strategy has not been without challenges. While the company occasionally funds purchases through operational revenue, it reported a loss in the most recent quarter. Despite these setbacks, its inclusion in the Nasdaq index in late 2024 underscores the growing recognition of its innovative financial strategies.
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