Thomas Daniels
The Virginia-based business analytics company MicroStrategy has indicated an aggressive expansion of its Bitcoin acquisition strategy by announcing plans to raise $2 billion through a preferred stock offering. This program is a component of the company’s ambitious “21/21 Plan,” which calls for the use of a variety of financial instruments to raise $42 billion over three years.
The permanent preferred stock will rank senior to the company’s Class A common stock and is anticipated to be issued in Q1 2025. Although the specifics are still being worked out, it might contain clauses allowing for conversion to common shares, cash dividend payments, and redemption options.
The action taken by MicroStrategy is consistent with its recent Bitcoin buying binge, which saw significant acquisitions in December 2024:
Dec. 30: 2,138 BTC at $97,837 per coin ($209 million)
Dec. 23: 5,262 BTC at $106,662 per coin ($561 million)
Dec. 16: 15,350 BTC at $100,386 per coin ($1.5 billion)
Dec. 9: 21,550 BTC at $98,783 per coin ($2.1 billion)
Dec. 2: 15,400 BTC at $95,976 per coin ($1.5 billion)
MicroStrategy now owns about 446,400 BTC, or $43.67 billion, as a result of these purchases. With an average purchase price of $62,396 per Bitcoin compared to the current market price of $97,699, this represents an unrealized gain of 56.78% ($15.82 billion).
The announcement coincides with Bitcoin’s battle to recover from its December 17, 2024, peak of $108,268. As of this writing, Bitcoin is almost 10% off its top at $97,699, and it is seeing resistance above the $100,000 mark.
Michael Saylor, the company’s founder, stressed that the money raised from this most recent fundraising campaign will be utilized to strengthen the company’s financial sheet and increase its Bitcoin holdings. MicroStrategy remains a leading institutional player in the cryptocurrency sector because of its unwavering dedication to Bitcoin acquisition.
