#CryptoReboundStrategy
MicroStrategy expands its '21/21 plan' with a 2 billion dollar preferred stock offering for bitcoin purchases.
MicroStrategy seeks to raise up to 2 billion dollars through the sale of preferred shares, which expands its previously announced plan to sell 42 billion dollars in equity and debt securities.
This latest offering is expected to take place in the first quarter of 2025.
MicroStrategy, the software company turned leveraged bitcoin trading vehicle, seeks to raise up to 2 billion dollars through the sale of preferred shares to advance its previously announced plan to raise 42 billion dollars in capital to finance bitcoin purchases over a three-year period.
According to an announcement made on Friday, the company will attempt to raise up to 2 billion dollars through one or more public offerings of perpetual preferred shares. These shares will have priority over MicroStrategy's Class A common shares.
MicroStrategy, the business intelligence company founded by former CEO Michael Saylor, is by far the largest corporate holder of bitcoins since it started buying the cryptocurrency during the pandemic-era bull market. It currently holds over 145,000 BTC, valued at about 14 billion dollars at current prices.
In recent years, MicroStrategy has followed its strategy of buying bitcoins through stock and debt offerings. In November, for example, it made a 3 billion dollar debt offering to buy bitcoins.
In October, MicroStrategy announced its plans to offer 21 billion dollars in shares and 21 billion dollars in debt securities to support this bitcoin treasury reserve strategy, a measure referred to as its '21/21 plan'. As of December 15, the company had approximately 7.65 billion dollars in remaining shares for sale.
MSTR shares, which outperformed Bitcoin in 2024, were added to the Nasdaq index at the end of December.
MicroStrategy's latest offering is expected to take place in the first quarter of 2025, but it is subject to market conditions, and the company reserves the right to decide whether to proceed or not. The preferred shares to be sold may convert into Class A MSTR shares and pay dividends. MicroStrategy has not yet set a target price for the offering.
The company also acquired bitcoins using capital obtained from its normal business practices, although it was not profitable during the last reported quarter.
