MicroStrategy Plans $2 Billion Stock Offering to Expand Bitcoin Holdings

MicroStrategy, a Tysons, Virginia-based business intelligence firm, has unveiled plans to raise up to $2 billion through public offerings of perpetual preferred stock. The initiative is aimed at strengthening its balance sheet and funding additional Bitcoin purchases as part of its ambitious “21/21 Plan.”

The company’s “21/21 Plan,” launched last October, targets raising $21 billion in equity and another $21 billion through fixed-income instruments, such as debt, convertible notes, and preferred stock, over a three-year period. Since the plan’s inception, MicroStrategy has acquired 194,180 BTC, amounting to approximately 45% of its investment goal. These holdings are currently valued at $19 billion.

The proposed stock offering is expected to take place in the first quarter of 2025, subject to market conditions and the company’s discretion. Details, including the number of depositary shares and pricing, are yet to be finalized. MicroStrategy has also scheduled a shareholder meeting via webcast to vote on increasing its authorized common stock to 10.3 billion shares from 330 million and its preferred stock to 1 billion shares from 5 million. The meeting will be open to stockholders of record as of a date to be determined in 2025.

As of January 3, MicroStrategy’s Bitcoin holdings have reached 446,400 BTC, valued at approximately $43.7 billion. The company’s unrealized gains from its cryptocurrency investments total about $16 billion, underscoring the success of its strategic focus on Bitcoin as a key asset.

Through the execution of the “21/21 Plan,” MicroStrategy aims to solidify its position as a leader in institutional Bitcoin adoption while simultaneously bolstering its financial resources for future growth. The upcoming stock offering represents a significant step toward achieving these objectives and advancing the company’s broader investment strategy.