What to know:

  • MicroStrategy has increased its bitcoin holdings for the ninth consecutive week.
  • The latest bitcoin purchase was funded through share sales under the company’s at-the-market (ATM) program.
  • MicroStrategy announced it would be raising up to $2 billion via a preferred stock offering to acquire more bitcoin.

Moreover, MicroStrategy has disclosed its intention to gather up to $2 billion through a preferred stock sale. This fundraising effort stands apart from the $21 billion equity and $21 billion debt financing plan known as the 21/21 plan.

The preferred stock ranks higher than Class A common stock. Key attributes mentioned in the filing include its convertibility to Class A common shares, cash dividend payments, and provisions that enable share redemption. The specifics regarding the type of perpetual preferred stock and pricing details are still undetermined, but the offering is anticipated to occur in Q1 2025. The main goal behind this offering is for MicroStrategy to purchase additional bitcoin assets.

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2025-01-06 16:31