MicroStrategy Doubles Down: 2.5 Million Shares to Fund Bitcoin Expansion

In a January 27 announcement, the company revealed plans to issue 2.5 million shares of perpetual preferred stock.

These shares will have a liquidation value of $100 each and will pay quarterly dividends starting March 31. Investors will also have the option to convert the preferred shares into common stock.

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The company stated, "MicroStrategy intends to use the net proceeds from the offering for general corporate purposes, including the acquisition of Bitcoin and for working capital".

In Microstrategy's recent financial report, the company noted a 10.3% drop in revenue for the third quarter, which brought in $116.1 million compared to the same period last year. Despite these challenges, MicroStrategy introduced a new performance metric, reporting a 5.1% yield from its Bitcoin holdings.

The company has been ramping up its Bitcoin purchases as part of an initiative to raise $42 billion for its cryptocurrency reserves. The “21/21 Plan” aims to gather $21 billion from equity and another $21 billion from fixed-income securities.

Once known for its business intelligence software, MicroStrategy now describes itself as the largest Bitcoin Treasury. Bitcoin has become central to the company’s identity and strategy.

Meanwhile, Metaplanet, a venture capital company based in Japan, recently planned to boost its Bitcoin holdings in 2025. How? Read the full story.