The American development and business intelligence company will implement its plan to expand its Bitcoin portfolio as it pursues its strategy of raising significant investments in cryptocurrencies.
Despite accumulating a huge amount BitcoinMicroStrategy plans to boost its BTC holdings by leveraging the estimated $2 billion it will generate from the preferred equity offering.
Plan 21/21
Micro-strategy announced announced in a press release that it plans to sell part of its shares through an offering of preferred shares. The company’s goal is to raise funds to fund additional Bitcoins as part of its bold “21/21” plan.
“MicroStrategy plans to raise up to $2 billion of capital through public offerings of perpetual preferred stock in the first quarter of 2025.” MicroStrategy co-founder Michael Saylor said in the post.
The company said it would raise $2 billion from “one or more underwritten public offerings” of perpetual preferred stock on the MicroStrategy platform Class A common stock.
“The Fidelity Preferred Stock may include, among other things, features such as (i) the ability to be converted into shares of our Class A common stock, (ii) the payment of cash dividends, and (iii) redemption provisions,” MicroStrategy explained.
Other ways to finance cryptocurrency purchases
MicroStrategy said it is finding other options to pursue its plan to raise $21 billion in equity and $21 billion in fixed income as part of the company’s strategy to buy more Bitcoin.
The business intelligence firm is implementing this plan by raising funds through senior convertible notes and debt, which allows the company to continually acquire additional digital assets. The company said the offering is expected to occur, if at all, in the first quarter of 2025.
MicroStrategy explained that the planned offering will “strengthen its balance sheet and acquire more bitcoin.”
However, MicroStrategy noted that it may decide to continue with the offer or not.
“The decision to proceed with and consummate the Offering is at the sole discretion of MicroStrategy and is subject to market and other conditions,” the company said.
Source: Bitcoin Treasuries
The largest Bitcoin holder
The data showed that MicroStrategy is already the world’s largest corporate holder of Bitcoin, and yet despite this milestone, the company remains committed to acquiring more cryptocurrencies.
Saylor, who is also the company’s executive chairman, is the mastermind behind MicroStrategy’s Bitcoin investment strategy.
To date, the owner is MicroStrategy 446,400 Bitcoins with an estimated value of $43.9 billion.
Featured image from MicroStrategy, chart from TradingView
