🚀MicroStrategy plans to issue preferred shares again to raise $2 billion to continue expanding its Bitcoin reserves
Despite having already accumulated a significant amount of Bitcoin, MicroStrategy still plans to use approximately $2 billion raised from the issuance of Class A common stock perpetual preferred shares this year to increase its BTC holdings.
In an official statement, MicroStrategy announced its plan to raise funds through the issuance of preferred shares, which is part of its "21/21" plan aimed at obtaining more Bitcoin financing.
Company co-founder Michael Saylor stated that their goal is to raise up to $2 billion through a public offering of perpetual preferred shares in the first quarter of 2025. These perpetual preferred shares will have options to convert into Class A common stock, regular cash dividend payments, and allow for stock redemption.
Additionally, MicroStrategy is exploring various financing avenues with a target of raising $21 billion in equity and $21 billion in debt instruments to support its corporate strategy of purchasing more Bitcoin. Meanwhile, it continues to expand its digital asset holdings through senior convertible bonds and debt financing.
The issuance is expected to take place in the first quarter of 2025, and the planned issuance will strengthen its balance sheet and acquire more Bitcoin.
However, the company also noted that whether to continue and complete this issuance is entirely at MicroStrategy's discretion and is subject to market and other conditions. This means they are not obligated to complete this issuance and can make flexible adjustments based on actual circumstances.
Data shows that MicroStrategy is already the world's largest corporate holder of Bitcoin. Despite reaching this milestone, the company remains committed to raising funds for the purchase of more cryptocurrencies.
Furthermore, MicroStrategy's Bitcoin investment strategy has been initiated and meticulously planned by its Executive Chairman Saylor. To date, the company has accumulated 446,400 Bitcoins, which have a total value of up to $43.6 billion at current market value.
💬What do you think about MicroStrategy's strategy of holding Bitcoin on a large scale? Do you believe this investment approach will bring long-term benefits to the company? Leave your thoughts in the comments!
