MicroStrategy doubles down on Bitcoin, plans $2 billion stock offering to fund more BTC buys

Key Takeaways

• MicroStrategy intends to raise $2 billion for acquiring more Bitcoin.
• The company aims to increase its Bitcoin holdings with a "21/21 Plan."

MicroStrategy has revealed plans to raise up to $2 billion through public offerings of perpetual preferred stock to strengthen its balance sheet and fund more Bitcoin purchases.

The planned stock offering falls under MicroStrategy’s “21/21 Plan,” which targets raising $21 billion in equity and another $21 billion through fixed income instruments, including debt, convertible notes, and preferred stock over three years.

The offering is expected to take place in the first quarter of 2025, subject to market conditions and the company’s discretion, as noted in the press release. The final terms, including the number of depositary shares and pricing, have not been determined.

The Tysons, Virginia-based company has acquired 194,180 BTC since initiating its “21/21 Plan” last October, representing about 45% of its investment target. At current market prices, these holdings are valued at $19 billion.

MicroStrategy will hold a shareholder meeting via webcast to vote on increasing its authorized common stock to 10.3 billion shares from 330 million and preferred stock to 1 billion shares from 5 million, among other proposals. The meeting will be open to stockholders of record as of a date to be determined in 2025.

As of January 3, MicroStrategy holds 446,400 BTC, valued at approximately $43.7 billion, with unrealized gains of about $16 billion.