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Bitcoin maximalist MicroStrategy (MSTR+1.20%) has extended its Bitcoin buying spree, raising $584 million through a perpetual convertible preferred stock offering to fund additional Bitcoin purchases. Initially, MicroStrategy targeted $250 million for its capital raise, but demand ballooned the offering threefold. As a result, the final issuance totaled 7.3 million shares, priced at $80 each.
To be clear, perpetual convertible preferred stock is a type of preferred equity with no maturity date, allowing holders to convert their shares into a predetermined number of the company’s common stock at any time.
Under the leadership of former dot-com entrepreneur and current executive chairman Michael Saylor, and CEO Phong Le, the business intelligence firm has continued to accumulate Bitcoin. MicroStrategy has long advocated for Bitcoin, which is now part of its business model. In its third-quarter earnings report, MicroStrategy referred to itself as a “Bitcoin treasury company” and announced plans to raise $42 billion in capital over the next three years through a balanced mix of $21 billion in equity and $21 billion in fixed-income securities—an initiative the company calls its “21/21 Plan.”
Since 2020, MicroStrategy has been purchasing Bitcoin as a hedge against inflation and as an alternative to cash. Crypto asset management company Bitwise recently reported that MicroStrategy purchased 257,000 bitcoins last year, surpassing all the Bitcoin mined in 2024, which totaled 218,829 bitcoins.
As the largest publicly traded corporate holder of Bitcoin, MicroStrategy held approximately 471,107 bitcoins as of Jan. 27, 2025. With Bitcoin’s current price at $105,444, the company’s Bitcoin holdings are worth approximately $50 billion. This aggressive accumulation strategy underscores the company’s unwavering commitment to Bitcoin, positioning it as a key player in corporate cryptocurrency investment.