Key Takeaways
- MicroStrategy plans to raise $2 billion in Q1 2025 for Bitcoin purchases.
- This is part of its 21/21 plan to amass $21 billion in Bitcoin.
- The company currently holds 446,400 BTC, valued at $27.9 billion.
Michael Saylor, executive chairman of MicroStrategy, announced the company’s intention to raise $2 billion in the first quarter of 2025 to fund further Bitcoin purchases.
This initiative is part of its ambitious 21/21 plan, which aims to accumulate $21 billion in Bitcoin through equity and fixed-income instruments over three years.
Preferred stock offering
The capital will be raised through public offerings of perpetual preferred stock, which will rank senior to the company’s Class A common stock.
Owners of this stock may have options to convert to Class A shares, receive dividends in cash, or redeem shares under certain conditions.
Details such as the offering size, terms, and pricing will be disclosed after filing a Form S-3 with the U.S. Securities and Exchange Commission.
However, MicroStrategy noted it may choose not to proceed with the offering.
Recent Bitcoin acquisitions
MicroStrategy has aggressively expanded its Bitcoin holdings, purchasing 2,138 BTC for $209 million on December 30, 2024, at an average price of $97,837 per coin.
This brought its total Bitcoin stash to 446,400 BTC, valued at approximately $27.9 billion.
The company also achieved a QTD yield of 47.8% and a YTD yield of 74.1% on its Bitcoin investments in 2024.
Despite some criticism from investors like Jason Calacanis, who expressed concerns about the impact of large-scale Bitcoin purchases, MicroStrategy remains committed to its Bitcoin-centric corporate strategy.
