MicroStrategy has announced plans to raise $21 billion to expand its Bitcoin holdings. The company confirmed this move through an official press release, indicating its intent to generate funds by selling Series A preferred stock.
Strategic Fundraising for Bitcoin Expansion
According to the March 10, 2025 press release, the sale of shares will take place in a phased and strategic manner, considering market conditions, price fluctuations, and trading volumes. The majority of the raised capital will be allocated to Bitcoin purchases, while the remaining portion will support MicroStrategy’s operational activities.
MicroStrategy’s Growing Bitcoin Portfolio
Under the leadership of founder Michael Saylor, MicroStrategy currently holds 499,096 BTC, with a total acquisition cost of $33.1 billion. The company’s average purchase price stands at $66,357 per Bitcoin.
Market Reactions: Bitcoin Rises, MSTR Shares Drop
Despite the bullish nature of MicroStrategy’s announcement, its stock (MSTR) did not react positively. Pre-market trading saw MSTR shares drop by over 5% to $271, continuing a downward trend that has led to a 14% decline over the past month. On the other hand, Bitcoin surged to $84,000 following the news. However, since MicroStrategy typically conducts its Bitcoin purchases through over-the-counter (OTC) markets, the direct impact on BTC’s price is expected to be limited. Crypto analyst Ali Martinez pointed out that institutional investors view such dips as buying opportunities.
MicroStrategy continues to aggressively expand its Bitcoin holdings despite market fluctuations, maintaining its position as a key player among institutional investors in the crypto industry.
