PakGazette: Michael Saylor, founder and CEO of MicroStrategy, posted a tweet announcing his company’s intention to raise additional purchasing funds this year.
MSTR to raise $2 billion to expand Bitcoin holdings
Vocal Bitcoin evangelist Saylor shared a link to a press release stating that MicroStrategy is targeting a new fundraising goal for the first quarter of this year to raise an additional $2 billion to rack up another big lot of Bitcoin.
The document says that as part of the previously announced 21/21 plan to raise $21 billion through “fixed income instruments, including debt, convertible notes and preferred stock” over the next three years, MicroStrategy now announces the intention to make public one or more underwritten offerings of perpetual preferred stock and raise $2 billion. These shares will have priority over the company’s Class A common shares, the press release highlights.
The perpetual shares will give their owners options to convert to MSTR Class A common stock, to receive payment of cash dividends, as well as “share redemption provisions,” etc.
MicroStrategy plans to register the aforementioned offering by filing a Form S-3 with the U.S. Securities and Exchange Commission. The details of the offering, such as the number of depositary shares, the final terms of the offering, and the offering price , have not yet been decided, according to the document.
The press release underscores that MicroStrategy could choose not to pursue or consummate this offering at all.
Saylor’s company buys $209 million in Bitcoin
As PakGazette previously reported, on the last day of 2024, MicroStrategy spread the word about another massive Bitcoin purchase, as it had spent $209 million to acquire approximately 2,138 BTC at an average price of $97,837 per BTC.
That was the company’s eighth consecutive Bitcoin purchase recently. As of December 29, Saylor’s company holds an impressive 446,400 Bitcoin valued at $27.9 billion. Furthermore, MSTR has achieved a BTC return of 47.8% for the quarter and 74.1% so far this year, according to a tweet posted by Michael Saylor on December 31.
A week before that, the company announced another huge Bitcoin purchase worth $509 billion. However, recently, a large angel investor, Jason Calacanis, criticized these purchases and said that MicroStrategy’s extensive Bitcoin purchases may decrease investor interest in BTC.
