MicroStrategy Eyes $2 Billion Stock Offering to Expand Bitcoin Holdings

MicroStrategy, the largest corporate Bitcoin holder, has revealed plans to raise $2 billion through a perpetual preferred stock offering aimed at expanding its Bitcoin reserves.

The move aligns with the company’s aggressive acquisition strategy spearheaded by executive chairman Michael Saylor.

The proposed offering, announced on January 3, would involve converting class A common stock, issuing cash dividends, redeeming shares, or a combination of these. This initiative is separate from MicroStrategy’s broader “21/21” plan, which has focused on raising funds through equity and debt instruments for Bitcoin purchases.

If executed, the offering would enhance MicroStrategy’s balance sheet and finance further Bitcoin acquisitions. The company emphasized, however, that the decision to proceed depends on market conditions. Holders of the new stock would have seniority over common stockholders in events like liquidation or bankruptcy.

Currently, MicroStrategy holds 446,400 Bitcoin valued at $43.9 billion, acquired at an average price of $62,500 per coin. With its 2024 purchases alone amounting to 257,250 Bitcoin, the company is up 57% on its investment. The strategy has significantly boosted MicroStrategy’s stock performance, with shares climbing 438% over the past year.