MicroStrategy unveils $2 billion preferred stock offering

MicroStrategy announced plans to raise $2 billion through a preferred stock offering, marking a major expansion of its Bitcoin accumulation strategy.

This decision is part of what we call society Plan 21/21which aims to raise $42 billion through various financial instruments over three years.

The Tysons Corner, Va.-based company plans to issue perpetual preferred stock, which will rank higher than its Class A common stock.

The offering is expected in the first quarter of 2025 and could include convertibility into Class A common stock, payment of cash dividends and share repurchase provisions. The final conditions and prices have not yet been determined.

MicroStrategy continues to buy Bitcoin

This announcement follows MicroStrategy’s continued purchases of Bitcoin (BTC) throughout December 2024. Recent transactions include:

• December 30: 2,138 BTC at $97,837 per coin ($209 million)
• December 23: 5,262 BTC at $106,662 per coin ($561 million)
• December 16: 15,350 BTC at $100,386 per coin ($1.5 billion)
• December 9: 21,550 BTC at $98,783 per coin ($2.1 billion)
• December 2: 15,400 BTC at $95,976 per coin ($1.5 billion)

According to MicroStrategy Bitcoin Wallet Trackingthe company now holds approximately 446,400 BTC valued at $43.67 billion. This represents an unprecedented unrealized gain of 56.78% ($15.82 billion) on its investment.

The company’s average acquisition cost stands at $62,396 per Bitcoin, compared to the current price of around $97,699.

The latest capital raising initiative represents the ongoing – and aggressive – Bitcoin acquisition strategy led by founder Michael Saylor. The company plans to use the profits to “strengthen its balance sheet and acquire more bitcoin,” according to the press release.

The announcement comes as Bitcoin trades down nearly 10% from its all-time high of $108,268 reached on December 17, 2024. As of press time, BTC has shown clear signs of struggling to break through. the $100,000 mark.