Emily Walker
A development and business intelligence firm based in the United States is set to proceed with its initiative to enhance its Bitcoin assets, as part of a larger strategy to secure substantial cryptocurrency investments.
Though it already holds a considerable quantity of Bitcoin, MicroStrategy plans to further boost its BTC reserves by utilizing an anticipated $2 billion from its preferred stock sale.
The 21/21 Initiative
In a recent press release, MicroStrategy revealed its intention to offer shares through a preferred stock issuance, aiming to secure funding for additional Bitcoin acquisitions as part of its ambitious “21/21” initiative.
“MicroStrategy seeks to raise up to $2 billion through public offerings of perpetual preferred stock in the first quarter of 2025,” stated co-founder Michael Saylor.
The firm intends to raise this amount via “one or more public underwritten offerings” of perpetual preferred stock linked to MicroStrategy’s class A common stock.
“The perpetual preferred stock may include several features such as (i) options for conversion to our class A common stock, (ii) payment of cash dividends, and (iii) terms enabling share redemptions, among other characteristics,” clarified MicroStrategy.
Alternative Funding Methods
The company indicated that it is exploring various avenues to achieve its goal of raising $21 billion in equity and an additional $21 billion in fixed-income instruments, which aligns with its strategy for acquiring more Bitcoin.
MicroStrategy has previously sought funds through senior convertible notes and debt to facilitate ongoing digital asset acquisitions. The stock offering is slated for potential execution in the first quarter of 2025, according to the company.
They emphasized that this proposed offering aims to “fortify its financial standing and acquire additional Bitcoin.”
However, MicroStrategy has mentioned that the decision to proceed with the offering remains optional.
“The choice to advance and complete the Offering rests solely with MicroStrategy, and is contingent on market conditions and other factors,” the company stated.
Leading Bitcoin Holder
Current data indicates that MicroStrategy holds the title of the largest corporate Bitcoin owner globally, and despite this achievement, the company is devoted to increasing its cryptocurrency holdings.
Saylor, who serves as the executive chairman, is the mastermind behind MicroStrategy’s investment approach regarding Bitcoin.
As of now, MicroStrategy possesses 446,400 Bitcoins, valued at approximately $43.9 billion.
Image credit: MicroStrategy, chart credit: TradingView