MSTR Targets $2 Billion Capital Raise to Buy Bitcoin in Q1, 2025: Michael Saylor

U.Today - Michael Saylor, the founder and executive chairman of MicroStrategy, has published a tweet to announce his company’s intention to raise additional funds to buy Bitcoin this year.

MSTR to raise $2 billion to expand Bitcoin holdingsVocal Bitcoin evangelist Saylor shared a link to a press release that states that MicroStrategy targets a new fundraising goal for the first quarter this year in order to obtain additional $2 billion to accumulate another big Bitcoin batch.

The document says that as part of the earlier announced 21/21 plan to raise $21 billion through “fixed income instruments, including debt, convertible notes and preferred stock” over the coming three years, now MicroStrategy announces the intention to make one or more public underwritten offerings of perpetual preferred stock and raise $2 billion. That stock will be senior to the company’s A class common stock, the press release stresses.

The perpetual stock will give its owners options to convert to MSTR class A common stock, to receive payment of dividends in cash, as well as “provisions allowing for redemptions of shares” and so on.

MicroStrategy plans to register the aforesaid offering by filing a Form S-3 with the U.S. Securities and Exchange Commission. The details of the offering, such as the number of depositary shares, the final terms of the offering, the price of the offering, have not been decided on yet, according to the document.

The press release underscores that MicroStrategy might choose not to proceed or consummate with this offering at all.

Saylor's company buys $209 million in BitcoinAs reported by U.Today earlier, on the last day of 2024, MicroStrategy spread the word about yet another massive Bitcoin purchase as it had spent $209 million to acquire roughly 2,138 BTC at an average price of $97,837 per one BTC.

That was the company’s eighth consecutive Bitcoin purchase recently. As of Dec. 29, Saylor’s company owns a stunning 446,400 Bitcoin valued at $27.9 billion. Besides, MSTR has achieved a BTC yield of 47.8% QTD and 74.1% YTD, according to a tweet published by Michael Saylor Dec. 31.

A week before that, the company announced another huge Bitcoin purchase of $509 billion. Recently, though, a big angel investor Jason Calacanis criticized these buys, saying that extensive Bitcoin purchases by MicroStrategy may decrease investor interest in BTC.

Source: Investing.com