Key Takeaways
- MicroStrategy is raising $563M through a Series A preferred stock offering.
- The company already holds 471,107 BTC, making it the largest corporate Bitcoin holder.
- Michael Saylor predicts Bitcoin could reach $49 million per coin in the long term.
MicroStrategy, already the largest corporate holder of Bitcoin, plans to purchase even more with fresh capital.
The company will issue 7.3 million shares of its 8.00% Series A perpetual preferred stock, aiming to generate $563 million.
According to its January 31 release, the offering is expected to settle on February 5.
Current Bitcoin holdings
With 471,107 BTC already on its balance sheet, MicroStrategy trails only Binance, U.S. spot Bitcoin ETFs, and Satoshi Nakamoto in total Bitcoin holdings.
Price predictions
Michael Saylor, the company’s co-founder and leading Bitcoin advocate, recently laid out a long-term outlook for Bitcoin.
He predicts a “bear case” price of $3 million per BTC and a “bull case” of $49 million, assuming annual growth rates of 21% and 37%, respectively—figures still below Bitcoin’s historical 60% annualized growth over the past decade.
Offering details
MicroStrategy’s perpetual preferred stock will have a liquidation preference of $100 per share and an 8% annual dividend.
Holders can convert their shares into MicroStrategy’s class A common stock at a rate of 0.1000 shares per share.
The offering is managed by Barclays, Moelis & Company LLC, BTIG, TD Cowen, and Keefe, Bruyette & Woods.
