MicroStrategy announces 2.5M share offering to fund Bitcoin.
Last week, MicroStrategy acquired an additional $1.1 billion worth of Bitcoin, bringing its total digital asset holdings to 471,107 BTC.
The business intelligence firm has also proposed a stock offering to raise funds for “general corporate purposes,” including further Bitcoin acquisitions.
MicroStrategy plans to offer 2.5 million units of its perpetual strike preferred stock, which offers liquidation preference and fixed dividends. Holders also have the option to convert these units into common stock. The offering includes a $100 per-share liquidation preference, with dividends paid quarterly starting March 31.
The company stated that proceeds from the offering will be used for corporate purposes, including Bitcoin acquisition and working capital. MicroStrategy has positioned itself as the “world’s first and largest Bitcoin Treasury Company,” signaling a shift from its traditional business intelligence software focus. For the third quarter, MicroStrategy saw a 10.3% drop in revenue to $116.1 million, with a decrease in its gross profit margin to 70.4% from 79.4% last year.
Despite these challenges, MicroStrategy reported a 5.1% Bitcoin yield, marking a new performance benchmark for its crypto holdings. The firm has ramped up Bitcoin purchases, announcing plans to raise $42 billion for its digital asset strategy under the “21/21 Plan,” which includes $21 billion in equity and $21 billion in fixed-income securities.
One of the company’s largest Bitcoin purchases came just before U.S. President Donald Trump’s inauguration, acquiring 11,000 BTC at an average price of $101,191. Its biggest purchase occurred in November, when it added 55,000 BTC for around $5.4 billion.
Bitcoin miners are also following MicroStrategy's lead, building up their own digital asset reserves. A report by Digital Mining Solutions and BitcoinMiningStock from January 7 noted a trend in 2024 where many Bitcoin miners chose to hold onto more of their mined Bitcoin instead of selling it.
Other public companies, such as Semler Scientific, KULR Technology, and Metaplanet, have also added Bitcoin to their balance sheets.
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