The American firm specializing in software development and business analytics plans to proceed with expanding its Bitcoin portfolio, executing a strategy that focuses on acquiring substantial crypto investments.
Regardless of already owning a significant quantity of Bitcoin, MicroStrategy intends to grow its BTC reserves by approximately $2 billion, which it anticipates raising through the sale of its preferred stocks.
The 21/21 Plan
In a recent press release, MicroStrategy revealed their intention to offload some shares by issuing preferred stocks. This move is aimed at generating capital for the purchase of more Bitcoins in line with their ambitious “21/21” strategy.
“MicroStrategy targets up to $2 billion capital raise through public offerings of perpetual preferred stock in the first quarter of 2025,” MicroStrategy co-founder Michael Saylor said in a post.
The company announced its intention to gather approximately $2 billion by selling perpetual preferred shares, either individually or collectively, through public offerings that will be underwritten, using MicroStrategy’s Class A common stock as the offering base.
As a crypto investor, I’ve come across the term “perpetual preferred stock” which comes with various attributes. For instance, it might be convertible into our Class A common stock, offering potential benefits associated with ownership. Additionally, it could provide cash dividends, adding an income stream to my investment portfolio. Lastly, there may be provisions for redeeming shares, providing flexibility in managing my holdings, among other features. MicroStrategy has outlined these aspects clearly.
Other Ways To Finance Crypto Purchases
MicroStrategy announced they’re exploring alternative methods to achieve their goal of procuring a total of $42 billion, split between equity and fixed-income securities. This strategic action is intended for the purchase of additional Bitcoins.
The business intelligence company has been pursuing a strategy that involves securing funds through senior convertible notes and loans. This enables the company to keep purchasing more digital assets on an ongoing basis. If everything goes as planned, this offering could take place during the first quarter of 2025, according to their announcement.
In simpler terms, MicroStrategy shared that this upcoming offering aims to improve their financial position and purchase additional bitcoins.
However, MicroStrategy noted that it may choose to proceed or not to proceed with the offering.
“The decision whether to proceed with and consummate the Offering is in MicroStrategy’s sole discretion and is subject to market and other conditions,” the company stated.
Largest Bitcoin Holder
The data reveals that MicroStrategy currently holds the most significant amount of Bitcoin among global corporations. Remarkably, this achievement doesn’t deter the company from continuing its pursuit of acquiring even more digital currencies.
As the executive chairman at MicroStrategy, I’ve been instrumental in developing our strategic approach towards Bitcoin investments.
To date, MicroStrategy owns 446,400 Bitcoins with an estimated value of $43.9 billion.
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2025-01-05 09:41