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MicroStrategy Doubles Down on Bitcoin, Plans Massive Capital Raise

Coin WorldMonday, Jan 27, 2025 10:22 am ET

1min read

MicroStrategy, the world's largest corporate Bitcoin holder, has doubled down on its Bitcoin strategy by filing a shelf registration statement with the SEC. The company plans to offer various securities, including bonds, common stock, preferred stock, warrants, and units, at different times in the future to raise capital efficiently. The proceeds from these offerings will be used to acquire additional Bitcoin and for general corporate purposes.

In addition to its capital raising efforts, MicroStrategy has also announced a significant Bitcoin purchase. The company acquired 10,107 BTC for $1.1 billion, bringing its total holdings to 471,107 BTC. This purchase was financed through stock sales, with MicroStrategy selling 2,765,157 shares during the same period. The company retains $4.35 billion in available shares under its sales agreement, providing further financial flexibility for its Bitcoin strategy.

MicroStrategy's aggressive Bitcoin treasury strategy has been supported by shareholders, who recently approved an increase in authorized Class A common shares from 330 million to 10.3 billion and preferred stock from 5 million to 1 billion. This move aligns with the company's goal of raising $42 billion by 2027 for additional Bitcoin acquisitions.

Furthermore, MicroStrategy has proposed a preferred stock offering (NASDAQ:MSTR) to raise funds for general corporate purposes, including Bitcoin acquisition. The company plans to offer 2.5 million shares of Series A Perpetual Strike Preferred Stock.

MicroStrategy's commitment to Bitcoin has inspired other companies to adopt similar strategies. For instance, Metaplanet in Japan has accumulated 1,762 BTC and plans to increase its holdings to 10,000 BTC by 2025. This trend reflects a broader acceptance of Bitcoin as a viable asset class among corporate entities, particularly in markets with growing crypto adoption.

Despite recent market volatility, MicroStrategy remains undeterred in its Bitcoin strategy. The company views temporary market conditions as opportunities rather than obstacles and maintains a long-term perspective on Bitcoin's valuation. As the largest corporate holder of Bitcoin, MicroStrategy's actions set a precedent that may influence corporate investment strategies globally.

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