MicroStrategy announced its intention to raise up to $2 billion through the issuance of perpetual preferred stock as part of its 21/21 Plan, a strategy to secure $42 billion over three years.
MicroStrategy's 2025 Plan
MicroStrategy aims to enhance its balance sheet and continue its Bitcoin acquisition strategy. As of January 3, the company held 446,400 BTC valued at approximately $43.7 billion. The funds raised will enable more Bitcoin purchases, solidifying its leading position in the sector.
Characteristics of Preferred Stock
The preferred stock will feature convertibility into common stock, cash dividend payments, and redemption features. Pricing and quantity details are yet to be finalized, but are likely to be filed with the U.S. Securities and Exchange Commission (SEC).
Company's Long-term Strategy
The company plans to complete the offering in the first quarter of 2025, subject to market conditions, and hold a shareholder meeting to consider increasing authorized stock. MicroStrategy is confident in its long-term Bitcoin strategy despite inherent risks and volatility.
MicroStrategy continues to heavily invest in Bitcoin, highlighting the company's confidence in the importance of digital assets to its business model.
