MicroStrategy announced plans to raise $2 billion through a preferred stock offering, marking a major expansion of its Bitcoin accumulation strategy.
The move comes as part of the company’s so-called 21/21 Plan, which aims to raise $42 billion through various financial instruments over three years.
The Tysons Corner, Virginia-based company plans to issue perpetual preferred stock, which will rank senior to its class A common stock.
The offering is expected in the first quarter of 2025 and may include convertibility to class A common stock, cash dividend payments, and share redemption provisions. The final terms and pricing haven’t been determined yet.
MicroStrategy keeps buying Bitcoin
The announcement follows MicroStrategy’s continued Bitcoin (BTC) purchases throughout December 2024. Recent transactions include:
- Dec. 30: 2,138 BTC at $97,837 per coin ($209 million)
- Dec. 23: 5,262 BTC at $106,662 per coin ($561 million)
- Dec. 16: 15,350 BTC at $100,386 per coin ($1.5 billion)
- Dec. 9: 21,550 BTC at $98,783 per coin ($2.1 billion)
- Dec. 2: 15,400 BTC at $95,976 per coin ($1.5 billion)
According to the MicroStrategy Bitcoin portfolio tracker, the company now holds approximately 446,400 BTC valued at $43.67 billion. This represents an all-time unrealized gain of 56.78% ($15.82 billion) on its investment.
The company’s average acquisition cost stands at $62,396 per Bitcoin, compared to the current price of around $97,699.
The latest capital-raising initiative represents the ongoing — and aggressive — Bitcoin acquisition strategy spearheaded by founder Michael Saylor. The company plans to use the proceeds to “strengthen its balance sheet and acquire more bitcoin,” according to the press release.
The announcement comes as Bitcoin is trading close to 10% down from its all-time high of $108,268 touched on Dec. 17, 2024. At press time, BTC has shown clear signs of struggle in breaching the $100,000 milestone.
