TLDR
- MicroStrategy’s latest Bitcoin purchase of $1.1B adds 10,107 BTC to their holdings, now at 471,107 BTC
- The company plans a $250M preferred stock sale with 8% coupon rate for future purchases
- Company received approval to increase share count from 330M to 10.3B for future fundraising
- Early redemption of $1B in convertible notes scheduled for February 24, 2025
- Stock performance shows 600% growth over past year despite recent 1.4% dip
Virginia-based software company MicroStrategy has expanded its Bitcoin holdings once again, adding 10,107 BTC to its treasury between January 21 and January 26, 2025. The purchase, valued at $1.1 billion, brings the company’s total Bitcoin position to 471,107 BTC, currently worth approximately $30.4 billion.
This marks the twelfth straight week of Bitcoin purchases for the enterprise software provider, reinforcing its position as the largest corporate holder of the digital asset. The company now controls roughly 2% of Bitcoin’s maximum supply, cementing its role as a major player in the cryptocurrency market.
MicroStrategy has outlined new funding initiatives to continue its Bitcoin acquisition strategy. The company announced plans to offer $250 million in perpetual preferred stock, featuring an 8% fixed coupon rate. The stock will carry a conversion price of $1,000, though complete offering details remain under wraps.
The company’s shareholders recently granted approval for a substantial increase in authorized shares. The move expands MicroStrategy’s Class A common stock from 330 million to 10.3 billion shares, providing enhanced flexibility for future capital raising efforts.
To strengthen its financial position, MicroStrategy will redeem over $1 billion of its 0% Convertible Senior Notes ahead of schedule. The notes, originally due in 2027, will be redeemed on February 24, 2025, streamlining the company’s debt structure.
Market analysts have taken note of the company’s strategic moves. Benchmark analyst Mark Palmer suggests the early note redemption will allow investors to focus more directly on MicroStrategy’s operational performance rather than potential financial limitations.
The company’s stock performance has been remarkable over the past year, showing approximately 600% growth. However, recent trading saw a modest decline of 1.4% to $348.65, while Bitcoin experienced a 2.5% drop to $101,500.
MicroStrategy’s fundraising approach has been multifaceted, combining at-the-market stock sales with convertible debt offerings. The company has set an ambitious target of raising $42 billion in capital through 2027 to support its ongoing Bitcoin strategy.
As part of its latest capital raising initiatives, MicroStrategy plans to issue about 2.5 million shares of Series A perpetual strike preferred stock. This new offering will rank senior to the company’s Class A common stock and provide quarterly dividends starting March 31, 2025.
The company’s co-founder Michael Saylor addressed questions about MicroStrategy’s financial health during a recent investor meeting. “Our access to liquidity remains strong through both capital markets activities and operational cash flows,” Saylor explained, emphasizing that Bitcoin sales would not be necessary to meet debt obligations.
Recent stock issuance demonstrates the market’s continued support for MicroStrategy’s strategy. The company successfully placed 2.76 million new shares to fund its latest Bitcoin acquisition, showing sustained investor interest in its equity.
The number of authorized preferred shares has been set at 1 billion, creating additional pathways for future fundraising. This expansion allows MicroStrategy to maintain its Bitcoin acquisition strategy without compromising existing holdings.
Recent market activity showed some volatility, with MicroStrategy’s stock declining four percent during recent trading sessions. This movement aligned with broader market trends affecting both cryptocurrency and traditional equity markets.
Over the past three months, MicroStrategy has maintained a steady Bitcoin purchase schedule, utilizing both equity sales and debt issuance for funding. This methodical approach has established the company as a pioneer among publicly traded firms investing in cryptocurrency.
Bitcoin’s price movement during this period saw the digital asset trading below $100,000, reflecting wider market conditions. However, MicroStrategy’s commitment to its acquisition strategy remained unchanged despite short-term price fluctuations.
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