MicroStrategy unveils $2b preferred stock offering as Bitcoin holdings near 446,400
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.
Source: Saylortracker
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.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Stablecoin Legislation Booms Globally, Why Is China Taking the Opposite Approach? An Article to Understand the Real National Strategic Choices
Amid the global surge in stablecoin legislation, China has chosen to firmly curb stablecoins and other virtual currencies, while accelerating the development of the digital yuan to safeguard national security and monetary sovereignty. Summary generated by Mars AI. This summary is produced by the Mars AI model and its accuracy and completeness are still being iteratively improved.
Liquidity migration begins! Japan becomes the Fed's "reservoir," 120 billions in carry trade returns set to ignite the December crypto market
The Federal Reserve has stopped quantitative tightening and may cut interest rates, while the Bank of Japan plans to raise rates, changing the global liquidity landscape and impacting carry trades and asset pricing. Summary generated by Mars AI. This summary is produced by the Mars AI model, and the accuracy and completeness of its content are still under iterative improvement.
Weekly Hot Picks: Bank of Japan Sends Strongest Rate Hike Signal! Is the Copper Market Entering a Supercycle Rehearsal?
The leading candidate for Federal Reserve Chair is being questioned for potentially "accommodative rate cuts." Copper prices have reached a historic high, and a five-hour meeting between the United States and Russia ended without results. Expectations for a Japanese interest rate hike in December have surged, and Moore Threads' stock soared more than fivefold on its first day... What market moves did you miss this week?
Monad Practical Guide: Welcome to a New Architecture and High-Performance Development Ecosystem
This article will introduce some resources to help you better understand Monad and start developing.
Trending news
MoreCrypto prices
More
