MicroStrategy doubles down on Bitcoin, plans $2 billion stock offering to fund more BTC purchases

Key Takeaways

MicroStrategy plans to raise $2 billion to acquire more Bitcoin.
The company aims to increase its Bitcoin holdings with “Plan 21/21.”

MicroStrategy published plans to raise up to $2 billion through public offerings of preferred stock to bolster its balance sheet and buy more Bitcoin.

The proposed stock offering comes under MicroStrategy'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 will of the company, as indicated in the press release. The final terms, including the number of investment shares and prices, have not been decided.

The Virginia-based Tysons company has received 194,180 BTC since the “21/21 Plan” began last October, representing about 45% of its investment target. At current market prices, these holdings are valued at $19 billion.

MicroStrategy will hold a shareholder meeting via webcast to vote to increase their authorized common stock to 10.3 billion shares from 330 million and the preferred stock to 1 billion shares from 5 million, among other proposals. The meeting will be open to record holders on a date to be determined in 2025.

As of January 3, MicroStrategy holds 446,400 BTC, worth about $43.7 billion, with unrealized gains of about $16 billion.