MicroStrategy unveils $2 billion preferred stock offering

MicroStrategy announced plans to raise $2 billion through a preferred stock offering, marking a major expansion of its Bitcoin accumulation strategy.

The move comes as part of the company’s 21/21 Plan, which aims to raise $42 billion through various financial instruments over three years.

The Tysons Corner, Virginia-based company plans to issue perpetual preferred stock that will rank higher than Class A common stock.

MicroStrategy aims to raise up to $2 billion in capital through an initial public offering of perpetual preferred stock in the first quarter of 2025. $MSTR https://t.co/x1pbB8ArlH

— Michael Saylor⚡️ (@saylor) January 3, 2025

The offering is expected to occur in the first quarter of 2025 and may include convertibility into Class A common stock, cash dividend payments and share repurchase provisions. Final terms and pricing have yet to be determined.

MicroStrategy continues to buy Bitcoin

The announcement follows MicroStrategy’s ongoing purchases of Bitcoin (BTC) through December 2024. Recent transactions include:

December 30: 2,138 BTC, $97,837 per coin ($209 million) December 23: 5,262 BTC, $106,662 per coin ($561 million) December 16: 15,350 BTC, $100,386 per coin ($100,386 million) .5 billion USD) December 9: 21,550 BTC at $98,783 per coin ($2.1 billion) December 2: 15,400 BTC at $95,976 per coin ($1.5 billion)

The company currently holds approximately 446,400 BTC, worth $43.67 billion, according to the MicroStrategy Bitcoin portfolio tracker. This represents an all-time unrealized gain of 56.78% ($15.82 billion) on his investment.

Source: Saylortracker

The company’s average acquisition cost was $62,396 per Bitcoin, while its current price was $97,699.

The latest capital raising initiative represents the ongoing and aggressive Bitcoin acquisition strategy spearheaded by founder Michael Saylor. According to the press release, the company plans to use the proceeds to “strengthen its balance sheet and acquire more Bitcoin.”

The announcement comes as Bitcoin is trading down nearly 10% from its all-time high of $108,268 reached on December 17, 2024. At the time of writing, BTC showed clear signs of struggling to surpass the $100,000 milestone.