MicroStrategy Plans Additional $2 Billion Stock Offering to Bolster Bitcoin Holdings
2025-01-04
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MicroStrategy, the largest corporate Bitcoin holder, has announced plans to raise another $2 billion through a perpetual preferred stock offering.
The funds are intended to strengthen its balance sheet and further expand its Bitcoin holdings, aligning with the company’s ambitious “21/21” plan.
The new offering is separate from MicroStrategy’s existing strategy to raise $21 billion in equity and $21 billion in fixed-income instruments, the Bitcoin-stacking business intelligence firm in a Jan. 3 statement.MicroStrategy Continues to Buy More Bitcoin
Over recent months, the company has leveraged senior convertible notes and other debt instruments to fund its aggressive Bitcoin acquisition strategy.
The perpetual preferred stock offering is expected to take place within the current quarter, although its completion depends on market conditions and MicroStrategy’s discretion.
“MicroStrategy may choose not to proceed with or consummate the offering at all,” the company stated.
The offering is categorized as “senior” to its Class A common stock, giving holders priority in case of bankruptcy or liquidation.
As of now, MicroStrategy owns 446,400 Bitcoin, valued at $43.9 billion, according to Bitcoin Treasuries.
This includes 257,250 Bitcoin purchased in 2024 alone, marking its largest acquisition year to date.
The company’s average acquisition cost is $62,500 per Bitcoin, positioning it with a 57.2% gain on its investment.
Analysis on Preferred Stock Target Raise*MicroStrategy to Target a Capital Raise of Up to $2 Billion of Preferred Stock*link: (Very long post, trigger warning)First, what is a preferred stock? If you want a good primer, here's a … — Dylan LeClair 🟠 (@DylanLeClair_) 
This bold Bitcoin strategy has been championed by MicroStrategy’s executive chairman, Michael Saylor, who has been a leading advocate for corporate Bitcoin adoption.
The approach has significantly benefited MicroStrategy’s stock, with shares soaring 438% year-over-year to $339.6 on January 3.
However, shares dipped slightly by 0.19% following the announcement of the perpetual preferred stock offering.
MicroStrategy has outlined multiple ways the offering may be executed, including converting Class A common stock, paying cash dividends, or redeeming shares.MicroStrategy Shares Down 46% from November Peak
MicroStrategy (MSTR) shares fell below $300 during after-hours trading on Monday, marking a significant 46% decline from their all-time high in November.
The drop came amid growing concerns over the company’s ambitious $42 billion funding strategy, which heavily relies on increased debt and equity to finance its aggressive Bitcoin accumulation.
The sharp decline follows a year of impressive gains, with MSTR up 342% year-to-date, largely driven by Bitcoin’s 121% annual rise and the company’s extensive crypto purchases.
MicroStrategy’s most recent acquisition added 2,138 BTC to its reserves, bringing its total holdings to 446,400 BTC.
Despite this, and the stock’s inclusion in the Nasdaq 100 index on December 23, MSTR has been on a steady decline since reaching a $543 intraday high on November 21.
The company’s “21/21” strategy, announced in October, aims to raise $42 billion over three years by issuing $21 billion in equity and $21 billion in fixed-income securities.
Earlier this month, MicroStrategy proposed increasing its Class A common shares by 10 billion and preferred shares by one billion, a move that has sparked criticism.
The Kobeissi Letter described the proposal as a “lose-lose” scenario, stating that approval would dilute existing shareholders, while rejection would hinder the company’s ability to buy Bitcoin on leverage.