MicroStrategy Acquires 1,020 BTC and Plans $2 Billion Preferred Stock Offering

Disclaimer: The analyst who wrote this piece owns shares of MicroStrategy (MSTR).

MicroStrategy's Bitcoin Holdings

MicroStrategy (MSTR) has increased its bitcoin (BTC) holdings for the ninth consecutive week. The company holds more bitcoin than any other publicly traded company, with a total of 447,470 BTC after purchasing an additional 1,020 BTC for $101 million in the week ending Jan. 5. The average purchase price per bitcoin was $94,004, raising the overall average cost to $62,503.

Stock Performance

The share price experienced a recovery on Friday, gaining 13% after a nearly 50% drop from the Nov. 21 high of $543. As of pre-market trading, the stock is around $353, reflecting a 2% increase.

Capital Raise Announcement

MicroStrategy plans to raise up to $2 billion through a preferred stock offering, separate from its existing 21/21 plan aimed at raising $21 billion in equity and fixed income. Preferred stock will have priority over Class A common stock and includes features such as convertibility to Class A common stock, cash dividends, and redemption provisions. Terms for the perpetual preferred stock and pricing are yet to be determined, with the offering expected in Q1 2025. The capital raised will be used for further bitcoin acquisitions.