Software-firm-turned-leveraged-bitcoin-trading-vehicle MicroStrategy is looking to raise up to $2 billion by selling preferred stock to advance its previously announced plan to raise $42 billion in capital to fund bitcoin purchases over a three-year period.
According to an announcement on Friday, the company will attempt to raise up to $2 billion through one or more public underwritten offerings of perpetual preferred stock. This stock will be senior to MicroStrategy's Class A common stock.
MicroStrategy, the business intelligence company founded by former CEO Michael Saylor, is by far the largest corporate holder of bitcoin since it began purchasing the cryptocurrency during the pandemic-era bull market. It currently holds over 145,000 BTC, worth around $14 billion at current prices.
Over the past several years, MicroStrategy has pursued its bitcoin buying strategy via equity and debt offerings. In November, for instance, it completely a $3 billion debt offering to purchase bitcoin.
In October, MicroStrategy unveiled plans to offer $21 billion in equity and $21 billion in fixed-income securities to support this bitcoin treasury reserve strategy — a move referred to as its "21/21 plan." As of Dec. 15, the company had approximately $7.65 billion worth of shares remaining for sale.
MSTR stock, which outperformed bitcoin in 2024, was added to the Nasdaq index in late December.
MicroStrategy’s latest offering is expected to happen in Q1 2025, but it is subject to market conditions, with the company retaining discretion over whether to proceed. The preferred stock to be sold may be convertible to MSTR Class A shares and pay dividends. MicroStrategy has not yet set a target price for the offering.
The firm also acquired bitcoin using capital earned from its normal business practices, though it was not profitable during the last reported quarter.
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