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MicroStrategy, the world’s largest corporate holder of Bitcoin, is taking bold steps to further increase its cryptocurrency holdings. The company has announced plans to raise $2 billion through a perpetual preferred stock offering, with the goal of continuing its aggressive Bitcoin acquisition strategy. This move expands on the company’s “21/21” plan, which aims to raise $21 billion in equity and fixed-income instruments to fund its Bitcoin purchases.
The perpetual preferred stock offering, expected to occur this quarter, will be available through various methods, including converting MicroStrategy’s class A common stock, paying a cash dividend, or redeeming shares. This offering is separate from MicroStrategy’s previous initiatives, including senior convertible notes and debt instruments, used to fund its ongoing Bitcoin buying spree.
MicroStrategy’s current Bitcoin holdings stand at a staggering 446,400 BTC, valued at approximately $43.9 billion. Notably, the company purchased 257,250 BTC in 2024 alone, marking its largest Bitcoin acquisition year to date. With a dollar-cost average of $62,500 per Bitcoin, MicroStrategy has seen a 57.2% increase in the value of its Bitcoin investment.
This strategy has been spearheaded by Michael Saylor, the executive chairman of MicroStrategy, who is widely recognized for pioneering corporate Bitcoin adoption. Saylor’s vision has not only strengthened MicroStrategy’s position in the cryptocurrency space but also significantly boosted the company’s stock performance. MicroStrategy’s shares (MSTR) surged by 13.2% to $339.60 on January 3, marking a 438% increase from the same time last year.
Despite the optimistic outlook, MicroStrategy has noted that the decision to move forward with the perpetual preferred stock offering will depend on market conditions. If successful, the offering could further solidify the company’s dominance in the Bitcoin market, reinforcing its position as a key player in the growing cryptocurrency ecosystem.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: MicroStrategy Stock Soars 10%: Will $1B Bitcoin Gains Push MSTR to $500?
