MicroStrategy, the corporate world’s leading Bitcoin investor, is considering a hefty $2 billion preferred stock offering in its continuous quest to purchase more of the cryptocurrency. By converting the company’s class A common stock, offering cash dividends, redeeming shares, or implementing a combination of these approaches, the business intelligence giant hopes to raise the desired amount, as highlighted in a Jan. 3 press release.
This proposed offering is a separate move from the firm’s ongoing strategy to accumulate $21 billion in equity and $21 billion in fixed-income instruments. Over the recent months, MicroStrategy has primarily deployed this scheme to boost its Bitcoin acquisition spree with senior convertible notes and debt.
The Bitcoin behemoth aims to use the possible perpetual preferred stock offering to reinforce its financials and add more Bitcoin to its portfolio this quarter. However, whether this deal will take place is exclusively up to MicroStrategy and depends on a variety of market conditions.
Presently, MicroStrategy carries a commendable 446,400 Bitcoins, translating to a value of $43.9 billion. The company’s Bitcoin acquisitions have catapulted considerably in 2024, marking it the most considerable Bitcoin buying year for the firm.
The visionary behind MicroStrategy’s Bitcoin-centered strategy, executive chairman Michael Saylor, has played a monumental part in spurring worldwide corporate adoption of Bitcoin. Consequently, MicroStrategy’s shares have enjoyed substantial benefits, with a 438% year-on-year rise, despite a recent marginal fall after the announcement of the new stock offering plan.