MicroStrategy Expands Bitcoin Holdings with $21 Billion Capital Raise

MicroStrategy Doubles Down on Bitcoin Accumulation

MicroStrategy, now rebranded as Strategy, continues its aggressive Bitcoin acquisition strategy with a new capital raise. The company announced plans to issue up to $21 billion in 8.00% Series A Perpetual Preferred Stock (NASDAQ: STRK). This move aligns with its long-term goal of expanding its Bitcoin holdings through various financing methods, including equity, debt, and operating cash flow.

The perpetual preferred stock offering will be sold gradually, depending on market demand and conditions. Key terms include an 8.00% annual dividend, a $100 per share liquidation preference, and structures similar to previous issuances. The funds raised will primarily be used to secure more Bitcoin, reinforcing Strategy’s commitment to its cryptocurrency-focused strategy.

This capital raise is part of a broader plan to amass $42 billion in funding over three years. Strategy currently holds 499,096 BTC, valued at approximately $41.71 billion, with an average cost per BTC of $66,423. This position reflects a 25.83% unrealized gain, underscoring the company’s strong foothold in the cryptocurrency market. Bitcoin now accounts for 55.8% of Strategy’s $74.7 billion market cap, with shares trading at $274.11.

The company’s consistent approach to Bitcoin accumulation highlights its confidence in the long-term value of cryptocurrency. With this latest capital raise, Strategy further solidifies its position as a leader in institutional Bitcoin holdings.