MicroStrategy, the largest corporate holder of Bitcoin, plans to raise $2 billion through a perpetual preferred stock offering to fund additional Bitcoin acquisitions, expanding its ambitious “21/21” strategy. The offering could involve converting MicroStrategy’s class A common stock, paying cash dividends, redeeming shares, or a combination of these, the company explained in a Jan. 3 statement. This move is separate from MicroStrategy’s ongoing effort to raise $21 billion in equity and $21 billion in fixed-income instruments, a strategy it has executed recently through senior convertible notes and debt to fuel its Bitcoin purchases. The perpetual preferred stock offering aims to bolster the company’s balance sheet and finance more Bitcoin acquisitions. It is expected to take place this quarter, although MicroStrategy emphasized, “The decision whether to proceed with and consummate the Offering is in MicroStrategy’s sole discretion and is subject to market and other conditions. MicroStrategy may choose not to proceed with or consummate the Offering at all.” Unlike class A common stock, the perpetual preferred stock is “senior,” giving holders priority in the event of bankruptcy or liquidation. MicroStrategy’s Massive Bitcoin Holdings MicroStrategy currently owns 446,400 Bitcoin worth $43.9 billion, according to Bitcoin Treasuries. In 2024, the firm purchased 257,250 Bitcoin, marking its largest annual acquisition to date. The company’s Bitcoin has been acquired at an average price of $62,500, leaving it up 57.2% on its investment. Executive Chairman Michael Saylor, the architect of MicroStrategy’s Bitcoin strategy, has been pivotal in promoting corporate Bitcoin adoption globally. The strategy has significantly boosted MicroStrategy’s stock (MSTR), which rose 13.2% on Jan. 3 to $339.6, representing a 438% increase compared to last year. Following the announcement of the perpetual preferred stock offering, MSTR shares fell slightly by 0.19% in after-hours trading.
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