MicroStrategy Announces- MicroStrategy to Raise $2 Billion Through Preferred Stock Offering for Bitcoin Expansion
MicroStrategy Announces– MicroStrategy, the largest corporate Bitcoin holder, has revealed its intention to raise an additional $2 billion through a perpetual preferred stock offering. The funds are aimed at bolstering the company’s balance sheet and further increasing its Bitcoin reserves, in line with its ambitious “21/21” strategy.
Expanding Bitcoin Acquisitions with New Funding
The new offering is part of MicroStrategy’s broader strategy, which includes raising $21 billion in equity and $21 billion in fixed-income instruments. The company has been using various financial tools, such as senior convertible notes, to fund its aggressive Bitcoin acquisition plan.
“As of January 3, MicroStrategy holds 446,400 Bitcoin, valued at $43.9 billion,” the company stated. This includes a significant purchase of 257,250 BTC in 2024 alone, marking its largest acquisition year to date. The average cost per Bitcoin for the company is $62,500, giving it a 57.2% gain on its Bitcoin holdings.
Impact on MicroStrategy’s Stock and Market Strategy
Despite the promising Bitcoin strategy, MicroStrategy’s stock (MSTR) has experienced fluctuations. After reaching a peak in November, MSTR shares have fallen by 46% from their all-time high. This decline comes amid concerns over the company’s reliance on heavy debt and equity issuance to fund its Bitcoin purchases.
“MicroStrategy may choose not to proceed with or consummate the offering at all,” the company clarified in a statement. The preferred stock offering will be senior to its Class A common stock, offering holders priority in the event of liquidation or bankruptcy.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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