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Bitcoinist 2025-01-05 06:30:35

MicroStrategy Eyes $2 Billion Stock Offering To Supercharge Bitcoin Stash

A US-based development and business intelligence company will push through with its plan to build up its Bitcoin holdings, implementing its strategy of obtaining significant cryptocurrency investments. Despite amassing a huge amount of Bitcoin , MicroStrategy plans to increase its BTC holdings using the estimated $2 billion it will generate from its preferred stock offering. The 21/21 Plan MicroStrategy announced in a press statement that it plans to sell some of its shares through a preferred stock offering. The company aims to raise funds to finance additional Bitcoin as part of its audacious “21/21” plan. “MicroStrategy targets up to $2 billion capital raise through public offerings of perpetual preferred stock in the first quarter of 2025,” MicroStrategy co-founder Michael Saylor said in a post. The company stated it would raise $2 billion from “one or more public underwritten offerings” of perpetual preferred stock on MicroStrategy’s class A common stock . “The perpetual preferred stock may include features such as (i) convertibility to our class A common stock, (ii) payment of cash dividends, and (iii) provisions allowing for redemptions of shares, among other features,” MicroStrategy explained. Other Ways To Finance Crypto Purchases MicroStrategy said that it is finding other options to fulfill its plan which aims to raise $21 billion in equity and $21 billion in fixed-income instruments, a move that is part of the company’s strategy to buy more Bitcoins. The business intelligence firm has been implementing this plan such as getting funds from senior convertible notes and debt, allowing the company to continuously acquire additional digital assets. The offering is expected to occur, if at all, in the first quarter of 2025, the company said. MicroStrategy explained that the planned offering will “strengthen its balance sheet and acquire more bitcoin.” However, MicroStrategy noted that it may choose to proceed or not to proceed with the offering. “The decision whether to proceed with and consummate the Offering is in MicroStrategy’s sole discretion and is subject to market and other conditions,” the company stated. Largest Bitcoin Holder Data showed that MicroStrategy is already the world’s largest corporate holder of Bitcoin, and yet despite this milestone, the company remains committed to obtaining more cryptos. Saylor, who is also the company’s executive chairman, is the brains behind MicroStrategy’s Bitcoin investment strategy. To date, MicroStrategy owns 446,400 Bitcoins with an estimated value of $43.9 billion. Featured image from MicroStrategy, chart from TradingView

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