MicroStrategy Expands Bitcoin Holdings for 9th Consecutive Week, Plans $2B Stock Offering
MicroStrategy (MSTR) has continued to grow its bitcoin (BTC) reserves for the ninth consecutive week, further cementing its position as the largest publicly traded holder of the cryptocurrency.
In the week ending January 5, MicroStrategy purchased an additional 1,020 BTC, valued at $101 million. This latest acquisition brings the company’s total bitcoin holdings to 447,470 BTC.
As usual, Executive Chairman Michael Saylor teased the news in a post on X, where he shared that the average purchase price of the bitcoin was $94,004. This purchase raised the company’s overall average purchase price to $62,503 per BTC.
After experiencing a nearly 50% drop from a November 21 high of $543, MicroStrategy’s share price rebounded on Friday, gaining 13%. The stock was trading around $353 in pre-market trading, marking a 2% increase.
In addition to the bitcoin purchase, MicroStrategy announced plans to raise up to $2 billion through a preferred stock offering. This new offering is separate from the company’s previously announced “21/21 Plan,” which aims to raise $21 billion in equity and $21 billion in fixed income.
The preferred stock offering will take priority over MicroStrategy’s Class A common stock and may include features such as the option to convert to Class A common stock, cash dividends, and provisions for the redemption of shares. Specific terms for the perpetual preferred stock and pricing are still to be determined, but the offering is expected to take place in Q1 2025. The proceeds from the offering will be used to acquire more bitcoin.
