MicroStrategy’s $42B Bitcoin Move: Expansion Unpacked!

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Microstrategy Inc. (MSTR) to issue 2.5M shares of Series A Perpetual Strike Preferred Stock to fund Bitcoin buying spree.

Registered under the 1933 Act to raise capital for long term goals.

Key details of the stock include:

  • Liquidation Preference: $100 per share.

  • Quarterly Dividends: Fixed-rate payouts starting March 31, 2025.

  • Conversion Rights: Shareholders can convert stock into Class A common shares under specified terms.

  • Redemption Rights: Microstrategy can redeem shares in specific situations, such as tax events or significant reductions in outstanding share value.

Leading financial institutions, including Barclays, Moelis & Company LLC, and BTIG, are managing the offering.

 

BTC/USD

Record BTC Holdings and Recent Purchases

This comes after Microstrategy’s latest buy. They just bought 10,107 BTC for $1.1B, bringing their total to 471,107 BTC. Average price per BTC was $64,511. Big milestone for Microstrategy’s digital asset holdings.

SEC filing shows the $1.1B buy was funded by selling 2.76M Class A common stock between Jan 21-26.

The Ambitious 21/21 Plan

Under the leadership of Executive Chairman Michael Saylor, Microstrategy has outlined an ambitious initiative dubbed the “21/21 Plan.” The goal is to raise $42 billion over the next three years:

  • $21 billion from equity offerings.

  • $21 billion through fixed-income securities.

Saylor sees Bitcoin as a hedge against inflation and long term store of value. In a recent statement he said “Bitcoin is scarce and decentralized, it’s the perfect asset for wealth preservation”.

Saylor thinks Bitcoin could be $13M per coin by 2045. Big for Microstrategy’s Bitcoin bet.

Conclusion

Microstrategy’s aggressive Bitcoin expansion highlights its unwavering belief in the cryptocurrency’s future potential. By raising substantial capital and executing large-scale acquisitions, the firm continues to set a precedent in the corporate adoption of Bitcoin.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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