MicroStrategy Plans Spending $2 Billion on Bitcoin Before April

Micheal Saylor stated MicroStrategy has set a new fundraising target to raise an extra $2 billion for the first quarter of this year.

MicroStrategy announced its intention to make one or more public underwritten offerings of perpetual preferred stock to raise $2 billion as part of the previously announced 21/21 plan to raise $21 billion through “fixed income instruments, including debt, convertible notes, and preferred stock” over the next three years.

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The press release emphasizes that stock will be senior to the company’s A-class common stock. The perpetual stock will provide its owners with “provisions allowing for redemptions of shares,” the ability to convert to MSTR class A common stock, and the ability to receive dividend payments in cash.

The company intends to submit a Form S-3 to the U.S. Securities and Exchange Commission. The document states that the specifics of the offering, including the quantity of depositary shares, and the offering price, have not yet been determined.

The company has  446,400 Bitcoin, which is worth $28 billion.  MicroStrategy achieved a BTC yield of 47.8 percent QTD and 74.1 percent in 2024

The average acquisition cost for the company is $62,396 per Bitcoin, which is higher than the current price of about $98.2K . According to the press release, the company intends to “strengthen its balance sheet and acquire more bitcoin” with the money raised.

 

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ABOUT THE AUTHOR See More
Olumide Adesina
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.
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