A US-based business intelligence and development company will move forward with its plan to increase its bitcoin holdings, implementing its strategy of gaining significant investments in cryptocurrencies.
Despite accumulating a huge amount of <a target="_blank" href="https://www.coingecko.com/en/coins/bitcoin” target=”_blank” rel=”noopener nofollow”>bitcoinMicroStrategy plans to increase its btc holdings using the estimated $2 billion it will generate from its preferred stock offering.
The 21/21 Plan
Microstrategy announced in a press release that it plans to sell some of its shares through a preferred stock offering. The company aims to raise funds to finance additional bitcoin as part of its bold “21/21” plan.
“MicroStrategy is targeting capital raising of up to $2 billion through public offerings of perpetual preferred stock in the first quarter of 2025,” MicroStrategy co-founder Michael Saylor said in a post.
The company stated that it would raise $2 billion from “one or more underwritten public offerings” of perpetual preferred stock in MicroStrategy. <a target="_blank" href="https://www.barrons.com/articles/microstrategy-bitcoin-preferred-stock-offering-ed429d35″ target=”_blank” rel=”noopener nofollow”>class A common shares.
“Perpetual preferred shares may include features such as (i) convertibility to our Class A common stock, (ii) payment of cash dividends, and (iii) provisions permitting redemption of shares, among other features,” MicroStrategy explained.
Other ways to finance cryptocurrency purchases
MicroStrategy said it is looking at other options to fulfill its plan that aims to raise $21 billion in shares and $21 billion in fixed income instruments, a move that is part of the company's strategy to buy more Bitcoins.
The business intelligence firm has been implementing this plan, such as raising debt funds and senior convertible notes, allowing the company to continually acquire additional digital assets. The offering is expected to occur, in any case, in the first quarter of 2025, the company said.
MicroStrategy explained that the planned offering will “strengthen its balance sheet and acquire more bitcoins.”
However, MicroStrategy noted that it can choose whether or not to continue with the offering.
“The decision to proceed and consummate the Offering is at the sole discretion of MicroStrategy and is subject to market and other conditions,” the company said.
Source: bitcoin Treasuries
The largest holder of bitcoin
The data showed that MicroStrategy is already the largest corporate holder of bitcoin in the world, and yet despite this milestone, the company remains committed to obtaining more cryptocurrencies.
Saylor, who is also the company's CEO, is the brains behind MicroStrategy's bitcoin investment strategy.
To date, MicroStrategy has 446,400 Bitcoins with an estimated value of 43.9 billion dollars.
Featured Image by MicroStrategy, Chart by TradingView
