MicroStrategy Plans to Raise $2 Billion to Expand Bitcoin Purchases
Date: 2025-01-06 Author: Gabriel Deangelo Categories: BUSINESS
The move is intended to further the company’s ambitious goals to increase its cryptocurrency holdings.
The program, which launched in October 2024, aims to raise $21 billion through stock sales and another $21 billion through debt and other financing instruments. Since the plan began, the company has already purchased 194,180 bitcoin worth about $19 billion. As of January 3, 2025, MicroStrategy holds 446,400 bitcoin, valued at $43.7 billion at the time. That represents an undisclosed gain on its bitcoin investments of about $16 billion.
To achieve the goals of the plan, the company plans to conduct several public offerings of perpetual convertible preferred shares, which will have priority over common Class A shares. Raising these funds will allow MicroStrategy to continue expanding its crypto assets. The final decision on the issuance of new shares and the continuation of the $2 billion investment program will be made by shareholders at a meeting in the first quarter of 2025. It is worth noting that as a result of the active issue and sale of shares, Chairman of the Board of Directors Michael Saylor, who previously owned a controlling stake of 51.7% of the company, lost the ability to make decisions alone.
