MicroStrategy Acquires 1,070 BTC and Aims to Generate $2B Through Preferred Stock Offering

MicroStrategy Continues Bitcoin Buying Streak for 9th Week, Announces $2B Preferred Stock Offering

MicroStrategy (MSTR) has once again increased its bitcoin (BTC) holdings, marking its ninth consecutive week of purchases.

The company now holds more bitcoin than any other publicly traded firm. In the week ending January 5, MicroStrategy added 1,020 BTC to its portfolio, at a total cost of $101 million. This brings its total bitcoin holdings to an impressive 447,470 BTC.

As is customary, Executive Chairman Michael Saylor teased the announcement in a post on X, revealing that the average price paid for the latest batch of bitcoin was $94,004. This raised the overall average purchase price of the company’s holdings to $62,503 per BTC.

After facing a significant drop in its stock price from a November high of $543, MicroStrategy saw a rebound last Friday, with its shares gaining 13%. The stock was trading around $353 in pre-market trading, up 2% from the previous session.

Alongside the bitcoin purchase, MicroStrategy revealed plans to raise up to $2 billion through a preferred stock offering. This offering is distinct from the company’s “21/21 Plan,” which aims to raise $21 billion in equity and $21 billion in fixed-income securities.

The preferred stock will have priority over MicroStrategy’s Class A common stock and may include features such as convertibility into common stock, cash dividends, and the ability to redeem shares. The final terms of the perpetual preferred stock and pricing details are yet to be finalized, but the offering is expected to take place in Q1 2025. The proceeds from this offering will be used for further bitcoin acquisitions.