Michael Saylor, the founder and executive chairman of MicroStrategy, recently made headlines with his bold announcement on Twitter regarding the company’s ambitious plans to raise $2 billion to bolster its Bitcoin acquisition strategy this year.
MicroStrategy is aiming for significant expansion in its Bitcoin holdings. Saylor shared a press release detailing the company’s new fundraising target for the first quarter of 2025, which aims to secure additional funds to amass yet another substantial Bitcoin batch.
As part of the previously unveiled 21/21 plan, MicroStrategy aims to gather $21 billion over three years through various fixed income instruments, including debt and convertible notes. Now, the company is announcing plans to conduct one or more public underwritten offerings of perpetual preferred stock, with the intention of raising $2 billion. This perpetual stock will rank senior to the company’s A Class common stock, as highlighted in the press release.
The plan allows for flexibility; those who own the perpetual stock can convert it into MSTR Class A common stock, receive cash dividends, and benefit from provisions for share redemptions and more. The specifics regarding the number of depositary shares and the terms of the offering are yet to be finalized, as MicroStrategy prepares to register with the U.S. Securities and Exchange Commission by filing a Form S-3.
It’s crucial to note that MicroStrategy has the option to decide against proceeding with this offering entirely, as mentioned in the announcement.
Saylor’s company has been making waves in the Bitcoin space. In fact, just as 2024 came to a close, MicroStrategy revealed a significant purchase, spending $209 million to acquire approximately 2,138 BTC at an average price of $97,837 per Bitcoin. This marked the company’s eighth consecutive acquisition of Bitcoin, bringing its total holdings to an impressive 446,400 BTC valued at around $27.9 billion. The company has also reported a remarkable Bitcoin yield of 47.8% QTD and 74.1% YTD.
Interestingly, not everyone is on board with MicroStrategy’s aggressive approach. Prominent angel investor Jason Calacanis voiced concerns, suggesting that the extensive Bitcoin purchases by MicroStrategy could dampen broader investor interest in Bitcoin.
Despite differing opinions, Saylor remains undeterred, positioning MicroStrategy for a bold future in the ever-fluctuating landscape of cryptocurrency investment. Whether or not the company will successfully raise the intended $2 billion remains to be seen, but one thing is clear: Saylor is committed to his mission of acquiring more Bitcoin, reinforcing his status as a leading advocate in the crypto space.
