As the largest corporate holder of Bitcoin, MicroStrategy aims to raise $2 billion through a perpetual preferred stock offering to buy more Bitcoin, expanding its “21/21” plan.

In a statement on January 3, the company explained that the perpetual preferred stock could be obtained by converting MicroStrategy’s Class A common stock, paying a cash dividend, redeeming shares, or a combination of these methods.

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This offering is separate from MicroStrategy’s ongoing plan to raise $21 billion in equity and $21 billion in fixed-income instruments. The company has largely implemented this strategy in recent months to finance Bitcoin acquisitions through convertible senior notes and debt.

MicroStrategy plans to carry out the perpetual preferred stock offering this quarter to strengthen its balance sheet and purchase more Bitcoin.

However, the company stated, “The decision whether to proceed with and consummate the Offering is at MicroStrategy’s sole discretion and is subject to market and other conditions.”

“MicroStrategy may choose not to proceed with or consummate the Offering at all.”

MicroStrategy Will Eventually Unravel, Bitcoin Bulls Should Look Elsewhere

According to Bitcoin Treasuries, MicroStrategy owns 446,400 Bitcoin valued at $43.9 billion.

In 2024, it made its largest Bitcoin purchase to date, buying 257,250 Bitcoin alone.

These 446,400 Bitcoin were purchased at an average cost of $62,500, which means MicroStrategy is up 57.2% on its Bitcoin investment.

The company’s Bitcoin investment strategy was led by executive chairman Michael Saylor, who has been a pioneer in corporate Bitcoin adoption worldwide.

Saylor’s Bitcoin strategy has also greatly benefited MicroStrategy (MSTR) shares, which increased by 13.2% to $339.6 on January 3, a 438% rise compared to the same time last year.

However, after the announcement of the perpetual preferred stock offering plan, MSTR shares fell by 0.19% in after-hours trading.

The Change in MSTR’s Share Price on January 3 (including after-hours)

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