MicroStrategy announced plans to raise $2 billion through a preferred stock offering, marking a significant expansion of its Bitcoin accumulation strategy.
This move comes as part of the so-called company Plan 21/21which aims to raise $42 billion through various financial instruments over three years.
The Tysons Corner, Virginia-based company plans to issue perpetual preferred stock, which will rank higher than its Class A common stock.
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 stock redemption provisions. Final terms and prices have not been determined yet.
MicroStrategy continues to buy Bitcoin
This announcement comes on the heels of MicroStrategy continuing to buy Bitcoin (BTC) throughout December 2024. Recent transactions include:
- December 30: 2,138 Bitcoin at $97,837 per coin ($209 million)
- December 23: 5,262 Bitcoin at $106,662 per coin ($561 million)
- December 16: 15,350 Bitcoin at $100,386 per coin ($1.5 billion)
- December 9: 21,550 Bitcoin at $98,783 per coin ($2.1 billion)
- December 2: 15,400 Bitcoin at $95,976 per coin ($1.5 billion)
According to Micro Strategy Bitcoin wallet trackerThe company now owns approximately 446,400 bitcoins worth $43.67 billion. This represents an unrealized gain of 56.78% ($15.82 billion) on its investments.
The company's average acquisition cost is $62,396 per bitcoin, compared to the current price of about $97,699.
The latest capital raising initiative represents the ongoing and aggressive Bitcoin acquisition strategy led by founder Michael Saylor. The company plans to use the proceeds to “strengthen its balance sheet and acquire more Bitcoin,” according to the press release.
The announcement comes as Bitcoin is trading nearly 10% down from its all-time high of $108,268 reached on December 17, 2024. At the time of writing, Bitcoin showed clear signs of struggling to break through the $100,000 barrier.
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