MicroStrategy Buys More Bitcoin
MicroStrategy, the biggest corporate Bitcoin holder, intends a $2 billion permanent preferred stock sale.
The funds will bolster its balance sheet and increase its Bitcoin holdings, supporting its ambitious “21/21” objective.
In a Jan. 3 statement, MicroStrategy said the new product is different from its $21 billion equities and fixed-income strategy.
The permanent preferred stock offering is scheduled to finish this quarter, depending on market circumstances and MicroStrategy's discretion.
“MicroStrategy may choose not to proceed with or consummate the offering at all,” it said.
The offering is “senior” to its Class A common stock, giving investors preference in bankruptcy or liquidation.
Bitcoin Treasuries reports MicroStrategy holds 446,400 Bitcoin worth $43.9 billion.
This includes 257,250 Bitcoin bought in 2024, its greatest acquisition year.
The average Bitcoin acquisition cost is $62,500, giving the firm a 57.2% ROI.
The strategy has boosted MicroStrategy's stock 438% year-over-year to $339.6 on January 3.
After the permanent preferred stock issue, shares fell 0.19%.
MicroStrategy offers Class A common stock conversion, cash dividends, and share redemption.
MicroStrategy (MSTR) shares dropped 46% from their November peak, falling below $300 in after-hours trading on Monday.
The dip occurred on worries about the company's $42 billion financing plan, which mainly depends on debt and equity to support its rapid Bitcoin accumulation.
The sudden decrease followed a year of spectacular gains for MSTR, spurred by Bitcoin's 121% annual growth and the company's significant crypto acquisitions.
MicroStrategy now has 446,400 BTC after its last purchase contributed 2,138 BTC.
Since its $543 intraday high on November 21, MSTR has fallen steadily despite its inclusion in the Nasdaq 100 index on December 23.
In October, the business revealed its “21/21” plan to fund $42 billion over three years by selling $21 billion in equity and fixed-income instruments.
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