MicroStrategy Preferred Stock Offered to Raise $2 Billion for Bitcoin Investment

Key Points:

• MicroStrategy aims to raise $2 billion through public offerings of perpetual preferred stock to expand its Bitcoin holdings.
• The MicroStrategy preferred stock offering, expected in Q1 2025, will strengthen the company’s balance sheet.

MicroStrategy is looking to sell up to $2 billion worth of perpetual preferred stock to the public so it can make more Bitcoin investments.

Read more: MicroStrategy Shareholder Vote on Key Proposals, Including 21/21 Plan

MicroStrategy Preferred Stock Offered to Expand Holdings of Bitcoin

The new plan is part of the company’s broader goal to cement its status as one of the largest investors in Bitcoin.

In a press release published on Jan. 3, the business intelligence firm said the MicroStrategy preferred stock would be convertible from its Class A common stock, paying cash dividends, redeeming shares, or using any combination of the previous options. The capital raise is aimed at strengthening MicroStrategy‘s balance sheet and improving its Bitcoin acquisitions.

The effort complements the company’s earlier three-year plan of raising $42 billion for Bitcoin purchases. If successful, this could see the combination of the capital raised reach $44 billion. Already, MicroStrategy has implemented part of its initial strategy to inject equity and fixed-income instruments, such as senior convertible notes, to fund its buying spree of Bitcoin.

Michael Saylor’s Firm Remains Top Corporate Bitcoin Holder

The offering of MicroStrategy preferred stock is targeted to be completed during the first quarter of 2025, although the company added that it may, at its discretion, decide not to proceed for reasons including market conditions. It has also not given an indicative price at which the preferred stock will be offered.

MicroStrategy, under the lead of its Executive Chairman Michael Saylor, is one of the leading companies in corporate Bitcoin adoption. Accumulating more than eight weeks, the firm acquired 2,138 BTC for $209 million, adding to its stash and bringing the total holdings to 446,400 BTC. Bought at an average price of $62,500 per Bitcoin, this investment is up by 57.52%.