The leading Bitcoin holding company in the U.S. stock market, MicroStrategy, proposed the 21/21 plan in late October last year, aiming to raise $21 billion in equity financing and issue $21 billion in fixed-income products (including debt, convertible notes, and preferred stock) over the next three years, totaling $42 billion, to purchase more Bitcoin.
MicroStrategy Aims to Raise 2 Billion Through Preferred Stock Offering
Just yesterday (3rd), MicroStrategy announced the latest progress of its 21/21 plan. The company is currently planning to issue perpetual preferred stock through one or more public offerings to raise up to $2 billion.
These perpetual preferred shares will have priority over Class A common stock and may have the following features:
- Convertible into Class A common stock
- Pay cash dividends
- Support share redemption
MicroStrategy stated that the purpose of this issuance is to help the company continue to strengthen its balance sheet and purchase more Bitcoin, and if carried out, it is expected to be implemented in the first quarter of 2025.
However, MicroStrategy added that whether the issuance plan will be launched and completed will depend on market and other conditions, and MicroStrategy may decide not to proceed with or cancel this issuance. Additionally, the issuance is expected to be registered through the filing of an S-3 form with the U.S. Securities and Exchange Commission (SEC), and the number of depositary shares representing the perpetual preferred stock, final terms, and issue price have not yet been determined.
MicroStrategy's Bitcoin Holdings Exceed 446,000 Coins
MicroStrategy has raised cash multiple times through the sale of stocks and bonds to purchase Bitcoin. On Monday (30th), the company announced another Bitcoin purchase, using $209 million raised from the sale of Class A common stock to acquire 2,138 Bitcoin at an average price of around $97,837 per coin.
As of now, MicroStrategy holds a total of 446,400 Bitcoin, with a current value of approximately $43.84 billion and unrealized gains of $15.94 billion.
MSTR Stock Price Surges Over 13%
Possibly influenced by MicroStrategy's continued efforts to raise funds to purchase more Bitcoin, the company's stock price rebounded after a recent decline. According to Google Finance data, MicroStrategy's stock price rose 13.22% in a single day, recovering to $339.66.
