YEREVAN (CoinChapter.com) — MicroStrategy announced plans to issue 2.5 million units of perpetual strike preferred stock. The funds will be used for “general corporate purposes,” including further Bitcoin purchases.
The Jan. 27 announcement highlighted that each preferred stock unit would have a $100 liquidation preference. Dividends will be paid quarterly, starting on March 31. Shareholders will also have the option to convert preferred stock into common stock.
The company described itself as the “world’s largest Bitcoin Treasury Company,” focusing on Bitcoin accumulation over its original software business.
MicroStrategy STRK Stock Offering. Source: Michael SaylorMicroStrategy’s Bitcoin Holdings Reach 471,107 BTC
MicroStrategy added 10,107 Bitcoin between Jan. 21 and Jan. 26, spending $1.1 billion at an average price of $105,596 per Bitcoin. This brought its total holdings to 471,107 BTC.
In November 2024, the company made its largest purchase, acquiring 55,000 BTC for $5.4 billion. Since August 2020, when it started buying Bitcoin with corporate funds, MicroStrategy has relied on debt issuance like convertible notes and secured loans to fund its acquisitions.
MicroStrategy 471,107 BTC Holdings. Source: Michael SaylorDespite a 10.3% decline in fiscal third-quarter revenues to $116.1 million, the company achieved a 5.1% Bitcoin yield during the same period. Gross profit margins also decreased to 70.4% from 79.4% in 2023.
MicroStrategy’s “21/21 Plan” for Bitcoin Accumulation
In October 2024, MicroStrategy unveiled its “21/21 Plan,” designed to raise $42 billion for Bitcoin. The plan allocates $21 billion to equity and $21 billion to fixed-income securities.
The company has already sold 2.76 million shares, raising $1.1 billion under this plan. Another $4.35 billion in shares remains available for future sales. In December 2024, MicroStrategy proposed increasing its common stock to 10.33 billion shares and its preferred stock to 1.005 billion shares. This adjustment allows more flexibility in raising funds.
Corporate Bitcoin Adoption Gains Momentum
MicroStrategy’s Bitcoin strategy has influenced other companies globally. Japanese firm Metaplanet ended 2024 with 1,762 BTC and announced plans to increase holdings to 10,000 BTC by 2025. Nasdaq-listed Fathom Holdings allocated $500,000 to Bitcoin and Bitcoin exchange-traded funds to diversify its balance sheet.
Fathom Holdings Bitcoin Treasury Strategy. Source: Sam Callahan
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