MicroStrategy's Bold Bitcoin Bet: Raising $722.5M Through New Stock Offering

MicroStrategy's Latest Bitcoin Push

MicroStrategy has made a significant move to expand its Bitcoin holdings through a new perpetual preferred stock offering. On March 18, the company announced the launch of STRF ("Strife"), a Series A Perpetual Preferred Stock aimed at institutional and select noninstitutional investors. This offering boasts a higher coupon rate of 10% compared to its previous STRK series, which had an 8% rate, and lacks a common stock conversion feature.

By Friday, March 22, MicroStrategy upsized the offering from an initial $500 million to $722.5 million, selling 8.5 million shares at $85 each, raising approximately $711.2 million. These funds will primarily target Bitcoin acquisitions and general corporate purposes.

Bitcoin Holdings and Future Plans

MicroStrategy currently holds over 499,200 Bitcoin, with the potential to surpass 500,000 BTC following this funding round. Michael Saylor, the company's chairman, emphasized their strategic focus on Bitcoin through a tweet, stating, "Everyone wants a winning strategy."

Under Saylor's leadership, MicroStrategy has become one of the largest institutional Bitcoin holders, with current holdings valued at over $42 billion. The company plans to raise $42 billion over the next few years, focusing on fixed-income assets to fuel further Bitcoin purchases.

At the time of writing, Bitcoin's value was approximately $84,386, highlighting the significant stake MicroStrategy holds in the cryptocurrency market. This move underscores the company's unwavering commitment to its Bitcoin strategy.