Bitcoin News Today: MicroStrategy Expands $2B Preferred Stock Offering to Buy 6,220 Bitcoin at $118,940 Each

MicroStrategy has expanded its preferred stock offering to $2 billion to accelerate Bitcoin acquisitions, a move underscoring its aggressive strategy to position the cryptocurrency as a core corporate asset. The funding will be used to purchase approximately 6,220 Bitcoin at an average price of $118,940 per coin, adding to its existing holdings of 607,770 BTC [1]. This brings the company’s total Bitcoin stash to one of the largest in the corporate sector, with the latest batch valued at over $740 million [4]. The offering, underwritten by Morgan Stanley and Barclays, reflects a financial engineering approach that combines preferred equity and convertible debt to finance purchases without excessively diluting common shareholders [3].

The expansion marks a significant escalation from an initial $500 million target to a total capital raise of $2.8 billion in some reports [1]. Proceeds will be allocated to Bitcoin, reinforcing CEO Michael Saylor’s long-standing thesis that the cryptocurrency serves as a hedge against macroeconomic uncertainty and a strategic competitive advantage. Saylor has emphasized Bitcoin’s role as “the world’s first engineered monetary network,” a statement that aligns with the company’s transparent reporting of cryptocurrency-related costs and gains [5].

MicroStrategy’s stock performance has closely mirrored its Bitcoin strategy, outperforming the S&P 500 in recent months despite broader market volatility. On July 24, for example, the company’s shares rose 0.55% despite a 43.2% decline in daily trading volume [4]. This resilience highlights investor confidence in the firm’s unconventional approach to treasury management, even as critics caution about potential refinancing risks if Bitcoin’s price corrections coincide with equity market downturns [5].

The stock offering includes STRC preferred shares priced at $90 with a 9% dividend, a structure designed to attract institutional and high-net-worth investors [6]. This financial innovation has enabled MicroStrategy to maintain liquidity while deepening its Bitcoin exposure. Analysts note that the company’s strategy hinges on Bitcoin’s long-term appreciation, a hypothesis Saylor has defended through public appearances and corporate disclosures [2].

The firm’s Bitcoin portfolio has an average acquisition cost of $71,756 per coin as of mid-2025 [4], reflecting a disciplined approach to accumulation. However, the company’s reliance on complex capital structures, including perpetual stock offerings, raises questions about its vulnerability to shifts in market sentiment. The recent purchases, made under a perpetual stock offering program, underscore the alignment of corporate treasury management with cryptocurrency market dynamics [5].

Experts suggest that MicroStrategy’s actions could contribute to increased market stability, as historical patterns indicate that significant institutional purchases often precede positive sentiment shifts [5]. The company’s role as the second-largest institutional Bitcoin holder further amplifies its influence on market valuation [1]. While regulatory scrutiny of corporate crypto holdings remains a risk, the firm’s ability to secure underwriting commitments from leading banks signals a degree of market validation for its strategy [6].

Source:

[1] Cointelegraph, [https://cointelegraph.com/news/strategy-raises-2b-preferred-stock-bitcoin-rally]

[2] Bitbo, [https://bitbo.io/news/strategy-raises-2b-bitcoin/]

[3] CCN.com, [https://www.ccn.com/news/crypto/strategy-upsizes-stretch-offering-2b-buy-more-bitcoin/]

[4] AInvest, [https://www.ainvest.com/news/microstrategy-bitcoin-purchase-boosts-holdings-607-770-btc-ranks-18th-trading-volume-2507/]

[5] Mitrade, [https://www.mitrade.com/au/insights/news/live-news/article-3-985750-20250725]

[6] Crypto Briefing, [https://cryptobriefing.com/microstrategy-raise-2b-bitcoin-purchases-upsized/]