Microstrategy Powers Ahead as New Funding Fuels Its Bitcoin Buying Machine
Software intelligence firm Microstrategy Inc. (Nasdaq: MSTR) announced Monday plans to issue 2,500,000 shares of Series A Perpetual Strike Preferred Stock through a public offering. The offering, registered under the Securities Act of 1933 and subject to market conditions, is intended to support the company’s strategic goals. According to the announcement:
Microstrategy intends to use the net proceeds from the offering for general corporate purposes, including the acquisition of bitcoin and for working capital.
The Series A Perpetual Strike Preferred Stock will feature a liquidation preference of $100 per share and will accrue fixed-rate dividends payable quarterly starting March 31, 2025. Stockholders will have the option to convert their shares into class A common stock under specified conditions, and Microstrategy retains the right to redeem the stock in certain situations, such as tax events or when the liquidation preference of outstanding shares falls below 25% of the original issuance. Barclays, Moelis & Company LLC, BTIG, TD Cowen, and Keefe, Bruyette & Woods are acting as joint book-running managers for the offering, while AmeriVet, Bancroft Capital, and The Benchmark Company will serve as co-managers.
This announcement followed the disclosure that Microstrategy acquired 10,107 bitcoins for $1.1 billion, raising its total holdings to 471,107 BTC at an average price of $64,511 per bitcoin. According to an SEC filing, the purchase was funded by selling 2.76 million shares of class A common stock between Jan. 21 and Jan. 26, generating $1.1 billion in net proceeds.
Microstrategy recently unveiled its ambitious “21/21 Plan” to raise $42 billion over three years to buy more BTC. The plan includes raising $21 billion in equity and $21 billion in fixed-income securities. This bold strategy aligns with executive chairman Michael Saylor’s vision of bitcoin as a store of value and a hedge against inflation, further solidifying Microstrategy’s position as a leader in digital asset investments. He projected bitcoin could reach $13 million by 2045.
