MicroStrategy new offering is launched to raise $2 billion through a public offering of perpetual preferred stock.
| Key Takeaways: – MicroStrategy plans to raise $2 billion through a public offering of perpetual preferred stock. – The funds will strengthen MicroStrategy’s balance sheet and support its ongoing Bitcoin acquisition strategy, led by founder Michael Saylor. |
The MicroStrategy new offering is all part of the company’s broader 21/21 Plan to raise $42 billion over three years using a mix of equity, fixed-income instruments, and debt.
The sale, planned for the first quarter of 2025, includes perpetual preferred stock that could be convertible into Class A common stock, with options to pay dividends in cash or through the distribution of additional stocks and redeem stocks. Specific terms and pricing haven’t been determined.
The proceeds from MicroStrategy new offering will help build its balance sheet to fund the acquisition of additional Bitcoins in its already aggressive, bold strategy undertaken by the brainchild of the firm, Michael Saylor.
The company’s Bitcoin-focused approach has already led to a significant rise in its market position, with its share value climbing and securing a spot on the Nasdaq 100 index.
MicroStrategy, the world’s largest corporate holder of Bitcoin, has turned itself into an early adopter of corporate Bitcoin holdings, even touted as a “Bitcoin treasure company,” by issuing debt and equity to buy Bitcoins.
| Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor. |
