Key Takeaways
- MicroStrategi intends to raise $2 billion to buy more bitcoins.
- The company aims to increase its Bitcoin funds with a “21/21 plan”.
MicroStrategy has revealed plans to raise up to $2 billion through public offerings of perpetual preferred stock to bolster its balance sheet and fund more bitcoin purchases.
The planned stock offering falls under MicroStrategi’s “21/21 plan,” which aims to raise $21 billion in equity and another $21 billion through fixed-income instruments including debt, convertible notes and preferred stock over three years.
The offer is expected to take place in the first quarter of 2025, subject to market conditions and the company’s discretion, as stated in the press release. Final terms, including the number of depositary shares and prices, have not been determined.
The Tysons, Virginia-based company has bought 194,180 BTC since launching its “21/21 Plan” last October, which represents about 45% of its investment goal. At current market prices, these funds are valued at $19 billion.
MicroStrategi will hold a shareholder meeting via webcast until votes on the increase of its authorized ordinary shares to 10.3 billion shares from 330 million and preferred shares to 1 billion shares from 5 million, among other proposals. The meeting will be open to registered shareholders from a date to be determined in 2025.
As of January 3, MicroStrategi holds 446,400 BTC, worth approximately $43.7 billion, with an unrealized gain of about $16 billion.
