MicroStrategy, the largest corporate Bitcoin holder, announced plans to raise $2 billion through a perpetual preferred stock offering to finance further Bitcoin acquisitions. The move is part of the company’s ambitious “21/21” strategy, which aims to raise $21 billion in equity and $21 billion in fixed-income instruments to fund Bitcoin purchases.
The offering, outlined in a Jan. 3 statement, may involve converting class A common stock, paying cash dividends, or redeeming shares. The company noted that the preferred stock is senior to common stock, granting holders priority in case of bankruptcy or liquidation.
MicroStrategy emphasized that the decision to proceed with the offering is subject to market conditions and remains at the company’s discretion.
As of now, MicroStrategy holds 446,400 Bitcoin, valued at $43.9 billion, with its 2024 purchases marking the largest annual acquisition to date. The company’s Bitcoin has been acquired at an average price of $62,500 per BTC, yielding a 57.2% return on investment.
Led by Executive Chairman Michael Saylor, MicroStrategy has played a pivotal role in promoting corporate Bitcoin adoption globally. The company’s stock (MSTR) surged 13.2% on Jan. 3, reflecting a 438% increase compared to the previous year. However, after announcing the new stock offering, shares saw a minor 0.19% dip in after-hours trading.
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