MicroStrategy has announced its intention to raise $2 billion through a preferred stock offering as part of its strategy to increase Bitcoin acquisitions.
MicroStrategy's New Financial Initiative
MicroStrategy, based in Tysons Corner, Virginia, has announced the launch of a capital-raising initiative through the issuance of preferred stock, as part of their 21/21 Plan. This plan aims to raise $42 billion through various financial instruments over the next three years. The new stock issuance, scheduled for the first quarter of 2025, may include convertibility into Class A common stock, cash dividends, and share redemption options. Final terms and pricing are yet to be determined.
Company's Current Assets
According to the company's Bitcoin portfolio tracker, MicroStrategy currently holds approximately 446,400 BTC, valued at $43.67 billion. This indicates an all-time unrealized gain of 56.78%, equating to $15.82 billion in profit. The company plans to use the proceeds to 'strengthen its balance sheet and acquire more Bitcoin.' In 2024, MicroStrategy continued its aggressive Bitcoin acquisition strategy, announcing the purchase of an additional 2,138 BTC for $209 million. The cryptocurrency was acquired at an average price of $97,837 per Bitcoin, marking the eighth consecutive week of acquisitions.
Metaplanet Purchases Bitcoin
Japanese investment firm Metaplanet made its largest Bitcoin acquisition to date by purchasing 619.7 BTC for just under $60 million. This purchase, disclosed on December 23, nearly quadrupled its previous record acquisition of 159.7 BTC in October. As a result of its aggressive Bitcoin buying strategy, Metaplanet earned the moniker 'Asia’s MicroStrategy.' The firm now holds 1,762 BTC, valued at approximately $168 million, with an average purchase price of $75,600 per BTC, making Metaplanet the 12th-largest public corporate Bitcoin holder globally.
MicroStrategy's strategy of intensifying Bitcoin acquisitions through the issuance of preferred stock demonstrates their confidence in the long-term value of cryptocurrency. A similar strategy is being implemented in Asia by Metaplanet, which has significantly increased its Bitcoin holdings.
