MicroStrategy Plans $2 Billion Fundraising Through Convertible Bonds
The company’s co-founder and executive chairman Michael Saylor has been a staunch supporter of Bitcoin. He views it as a valuable long-term asset and has made it a core part of MicroStrategy’s strategy.
Despite market ups and downs, MicroStrategy remains focused on Expand Bitcoin Reserves Still going strong. The timing is perfect for Trump’s aggressive push Bitcoin Reserve Plan It may bring stiff competition to Microstrategy later.
MicroStrategy’s 21/21 Plan
The plan is MicroStrategy’s 21/21 Plan“, a bold strategy Raised $21 billion through stocks and $21 billion through loans and other financial instruments over three years. Since launching the program in October 2024, the company has purchased 194,180 Bitcoins, almost halfway to its goal. These Bitcoins are currently worth $19 billion.
As of January 3, 2025, MicroStrategy owned 446,400 Bitcoins, worth approximately $43.7 billion. This huge holding resulted in $16 billion in unrealized gains for the company. Impressively, MicroStrategy’s stock, MSTR, has outperformed Bitcoin itself in 2024 and was recently included in the Nasdaq index.
The new $2 billion equity offering is expected to take place in early 2025, subject to market conditions. MicroStrategy, meanwhile, is asking shareholders to approve an increase in the number of shares it can issue. This includes increasing its common stock limit from 330 million shares to 10.3 billion shares and its preferred stock limit from 5 million shares to 1 billion shares. A shareholders’ meeting will be held to discuss the changes.
Raising funds for Bitcoin acquisitions
By raising more funds and buying more Bitcoin, MicroStrategy has strengthened its confidence in the future of cryptocurrencies. To support its Bitcoin buying strategy, MicroStrategy recently filed with the SEC seeking approval to issue billions of new shares.
The proposal seeks to increase the company’s Class A common shares from 330 million shares to 10.33 billion shares and preferred shares from 5 million shares to 1.005 billion shares. The move is aimed at raising the necessary capital to fund further Bitcoin acquisitions.
Trump plans to have a bullish year for cryptocurrencies, which would give Bitcoin a huge boost if he succeeds in his first 100 days in the White House. With Trump’s victory Bitcoin hits $100,000 Many analysts believe the trend will continue to rise despite some short-term pullbacks initially this year.
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FAQ
MicroStrategy’s 21/21 plan aims to raise $42 billion to buy Bitcoin, with $21B coming from stocks and $21B through loans over three years.
As of January 3, 2025, MicroStrategy owned 446,400 Bitcoins, worth approximately $43.7 billion, and had unrealized profits of $16 billion.
Trump’s push for Bitcoin reserves could bring competition to MicroStrategy, affecting Bitcoin market dynamics and potentially driving up prices.
