MicroStrategy Eyes Massive $2 Billion Offering to Bolster Bitcoin Holdings
MicroStrategy (MSTR) is reportedly planning a significant increase to its Series A perpetual preferred stock offering (STRC), potentially raising it from $500 million to a staggering $2 billion. This move aims to further expand its Bitcoin (BTC) treasury, according to a Bloomberg report published on Thursday.
Details of the Proposed Offering
The business intelligence firm is said to be increasing the size of its latest preferred equity offering to $2 billion, a substantial jump from the initially planned $500 million. The offering will involve shares of MicroStrategy’s STRC preferred stock, which carries an initial dividend of 9%. The shares are expected to be priced at $90 each, representing a discount from their face value of $100.
The initiative will also include five million shares managed by prominent banks including Morgan Stanley, Barclays, Moelis & Company, and TD Securities.
Bitcoin Acquisition Strategy
MicroStrategy intends to use the net proceeds from the offering to increase its Bitcoin holdings and for other general corporate purposes. This isn’t the first time the company has turned to equity offerings to fuel its Bitcoin purchases, demonstrating a consistent strategy.
The STRC is expected to rank higher than MicroStrategy’s Strike and Stride preferred shares, as well as its common equity, but will remain subordinate to its Strife preferred stock and outstanding convertible bonds.
Neither MicroStrategy nor its CEO, Michael Saylor, have officially confirmed the Bloomberg report.
MicroStrategy’s Bitcoin Dominance
This development comes on the heels of MicroStrategy’s acquisition of 6,220 BTC on Monday for approximately $740 million. The company currently holds around 607,770 BTC, valued at over $72 billion at Bitcoin’s current price.
MicroStrategy leads the pack among companies with Bitcoin treasuries, boasting the largest corporate reserve of BTC. They are followed by over 140 public companies. Collectively, these firms hold 918,133 BTC, worth approximately $109 billion, according to data from Bitcoin Treasuries.
The Growing Trend of Corporate Bitcoin Adoption
More and more corporate entities are considering following MicroStrategy’s lead and incorporating Bitcoin into their reserves.
However, a growing number of companies are also exploring altcoin-focused treasuries, holding major digital assets such as Ethereum (ETH), XRP, Solana (SOL), and BNB.
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