MicroStrategy to Issue 2.5 Million Shares to Buy Bitcoin
Date: 2025-01-28 Author: Oliver Abernathy Categories: BUSINESS
MicroStrategy has announced plans to issue 2.5 million Series A preferred shares with perpetual rights to distribute profits. The initiative is aimed at raising capital for Bitcoin investments, which are a key part of the company’s strategy.
MicroStrategy shares, which are included in the NASDAQ 100 index, have gained 14.5% since the beginning of the year, but their value has fallen 2.5% in the last 24 hours to $345, according to TradingView.
Under the leadership of Michael Saylor, the company continues to implement the “21/21 Plan,” a three-year program designed to raise $42 billion, with half of the funds raised through shares and the rest through bonds.
At the start of the program, the company had 330 million common shares and 5 million preferred shares. Last week, shareholders voted to issue additional shares, which will increase the number of common shares to 10.33 billion and preferred shares to 1.005 billion. The decision was supported by a majority of votes - 56%, of which 47% belong to Michael Saylor himself.
Proceeds from the sale of new shares will be used for corporate needs, including the purchase of bitcoins and replenishment of working capital. Preferred shares will have a liquidation value of $100, and dividends on them will be paid quarterly.
MicroStrategy regularly reports on bitcoin purchases. On January 27, the company said that between January 21 and 26, it purchased an additional 10,107 BTC worth $1.1 billion, which corresponds to an average price of $105,596 per bitcoin. As a result, the total volume of accumulated assets amounted to 471,007 BTC, estimated at $47.5 billion at the current rate of $100.8 thousand.
However, experts from The Wall Street Journal note that the company may face tax liabilities on unrealized profits. According to their calculations, this profit is about $18 billion, and the possible tax under unchanged rules can reach $4 billion.
MicroStrategy remains the largest corporate holder of bitcoins and is actively developing its investment initiatives in the field of cryptocurrencies.
