MicroStrategy (NASDAQ: MSTR) is planning to raise $2 billion to expand its Bitcoin (CRYPTO: BTC) bag.
The largest corporate holder of Bitcoin announced the plan Friday, January 3. The software firm said it will offer preferred stock to raise the funds for Bitcoin.
MicroStrategy’s latest move aligns with its plan to raise $21 billion through equity sales and $21 billion of fixed-income instruments in the next three years to buy more Bitcoin. The Michael Saylor-co-founded firm introduced the initiative, fondly termed the “21/21 plan,” in October and has raised over $7.5 billion through the means.
The proposed $2 billion preferred stock issuance will take precedence over the company’s class A common stock. It will feature provisions including convertibility into class A shares, the payment of cash dividends, and the option for share redemption.
Nonetheless, MicroStrategy has not determined the price or other details of the offering. Furthermore, the software firm reserves the right to discontinue the offering but will execute it, if at all, in the first quarter of the year.
MicroStrategy has Incessantly Amassed Bitcoin
Since adopting Bitcoin as a primary reserve asset in 2020, MicroStrategy has not looked back in its relentless acquisition of the asset. These purchases have ensured that it trounces other corporate firms in the number of bitcoins.
The business development firm now holds 446,400 BTC, valued at $43.81 billion at the current market price. Notably, BlackRock is the only firm holding more BTC than MicroStrategy. However, the leading Bitcoin spot ETF issuer does not particularly own any of them but keeps them on its client’s behalf.
Meanwhile, market users have seen MicroStrategy’s stock as a leveraged means of exposure to Bitcoin due to its growing mirror of the asset’s performance. This was seen in MSTR’s over 417% upsurge in the past year, fueled by Bitcoin’s bullish momentum.
The stock’s impressive performance ensured it entered the Nasdaq 100 index for non-financial firms. MSTR closed the last trading session at $399.66 after a resounding 13% daily upswing.
