YEREVAN (CoinChapter.com) — MicroStrategy, known as the largest corporate Bitcoin holder, has revealed plans to raise $2 billion through a perpetual preferred stock offering. The funds aim to expand its Bitcoin holdings, reinforcing the company’s ongoing strategy.
MicroStrategy detailed the perpetual preferred stock offering in a Jan. 3 statement. The company plans to execute the offering by converting its class A common stock, issuing cash dividends, redeeming shares, or combining these methods. This approach differs from its earlier $21 billion equity and fixed-income strategy that fueled recent Bitcoin acquisitions.
MicroStrategy Preferred Stock Announcement. Source: Michael Saylor
The company noted that the decision to proceed with the offering remains subject to market conditions. “MicroStrategy may choose not to proceed with or consummate the Offering at all,” the statement clarified.
Bitcoin Holdings Reach 446,400 BTC Valued at $43.9 Billion
MicroStrategy currently holds 446,400 Bitcoin, valued at $43.9 billion, according to Bitcoin Treasuries. The company acquired 257,250 Bitcoin in 2024 alone, marking its most significant year of purchases yet. The average purchase price of its Bitcoin holdings is $62,500, resulting in a 57.2% gain on its investment.
Bitcoin Holdings by Public Companies. Source: Bitcoin Treasuries
Executive chairman Michael Saylor has played a pivotal role in shaping MicroStrategy’s Bitcoin acquisition strategy. The company’s Bitcoin purchases underscore its focus on integrating cryptocurrency into its financial structure, aligning with broader trends in corporate Bitcoin adoption.
The perpetual preferred stock offering provides seniority to its holders over class A common stockholders during liquidation or bankruptcy, highlighting its distinct position in the company’s financing plans.
MicroStrategy (MSTR) Shares React to New Offering Announcement
MicroStrategy’s Bitcoin-focused strategy has had a noticeable impact on its stock performance. On Jan. 3, MSTR shares rose by 13.2%, closing at $339.6. This figure represents a 438% increase compared to the same period in the previous year.
MicroStrategy Stock Performance on Jan 3 . Source: Google Finance
Notably, after the announcement of the perpetual preferred stock offering, MSTR shares experienced a slight dip of 0.19% in after-hours trading. The small fluctuation reflects ongoing market adjustments related to the company’s Bitcoin initiatives.
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