MicroStrategy Stock Plummets 11.37% in Three Days, Trading Volume Ranks Fifth as Company Aims to Raise $2.1 Billion for Bitcoin Acquisition

On May 23, 2025, MicroStrategy (MSTR) experienced a significant decline, with its stock price dropping by 7.50% over the course of three consecutive days, resulting in a total decrease of 11.37%. The company's trading volume reached 80.44 billion, making it the fifth highest in the market that day.

MicroStrategy has announced a strategic move to issue up to $2.1 billion in Series A Perpetual Preferred Stock. This initiative is part of the company's broader plan to raise funds for general corporate purposes and to acquire more Bitcoin. The proceeds from this offering will be used to further bolster MicroStrategy's Bitcoin holdings, which are already substantial.

Michael Saylor, the founder and executive chairman of MicroStrategy, has been a vocal advocate for Bitcoin. He has predicted that the cryptocurrency could reach $13 million per coin by 2045, aligning with his vision of transforming MicroStrategy into a trillion-dollar enterprise. This bold forecast underscores Saylor's confidence in Bitcoin's potential and his strategic positioning of the company to capitalize on its growth.

MicroStrategy's transformation from a traditional software company into a Bitcoin holding powerhouse began in 2020. The company has since become the largest corporate Bitcoin holder in the world, with a total of 576,230 BTC worth over $64.25 billion. This shift has been a defining trait of MicroStrategy's market identity under Saylor's leadership.

The timing of this new stock offering is strategic, as Bitcoin recently hit a record high of $111,861.22 on May 22, 2025. Saylor's confidence in Bitcoin's upward potential is evident in his decision to increase MicroStrategy's stakes in the cryptocurrency, positioning the company to benefit from its continued growth.