MicroStrategy, led by Michael Saylor, is planning to raise $2 billion to increase its Bitcoin holdings. The company intends to do this through public underwritten offerings of perpetual preferred stock.
This move demonstrates MicroStrategy's commitment to Bitcoin as a core asset and is part of its broader 21/21 plan to raise at least $21 billion over the next three years. The proposed fundraising will involve various fixed-income securities, including debt, convertible notes, and preferred stocks.
The perpetual preferred stock will rank above the existing Class A common stock and provide holders with privileges such as cash dividends and share redemption options. MicroStrategy plans to file an offering with the U.S. Securities and Exchange Commission using a form S-3, but specific details are still being finalized. The company has the option to abandon the offering if necessary.
MicroStrategy has been actively acquiring Bitcoin, with its total holdings currently valued at approximately $27.9 billion. The company's Bitcoin yield has been impressive, showcasing the potential profitability of its investment strategy. However, there are mixed reactions to MicroStrategy's buying spree, with some viewing it as a visionary move and others expressing concerns about market disruption.
MicroStrategy's aggressive stance on Bitcoin acquisition reflects its belief in the future of cryptocurrency as a transformative financial technology. The company's leadership, particularly Michael Saylor, sees Bitcoin as a hedge against inflation and a store of value in an increasingly digital economy.
MicroStrategy's fundraising and acquisition efforts will be closely monitored, as they may serve as a bellwether for other firms considering similar investment strategies in the digital asset space.