MicroStrategy proposes 2.5M share offering to fund Bitcoin purchases

Business intelligence firm MicroStrategy has proposed a stock offering to raise cash for “general corporate purposes,” including acquiring more Bitcoin (BTC), signaling its intent to continue accumulating the digital asset. 

According to a Jan. 27 announcement, MicroStrategy intends to offer 2.5 million units of its perpetual strike preferred stock, which is a type of stock that has a liquidation preference and pays dividends at a fixed rate. Holders also have the option of converting it into common stock. 

According to MicroStrategy, its offering will have a per-share liquidation preference of $100. Dividends are payable quarterly, beginning on March 31. 

“MicroStrategy intends to use the net proceeds from the offering for general corporate purposes, including the acquisition of Bitcoin and for working capital,” the company said.

In the announcement, MicroStrategy described itself as the “world’s first and largest Bitcoin Treasury Company,” signaling that its business intelligence software is no longer its primary business.

In its fiscal third quarter, the company’s revenues declined 10.3% year over year to $116.1 million. Its gross profit margin also fell to 70.4% from 79.4% for the third quarter of 2023.

Nevertheless, MicroStrategy said it achieved a 5.1% Bitcoin yield, a new performance metric for its crypto holdings. 

Related: Saylor floats US crypto framework with $81T Bitcoin reserve plan

BTC purchases ramp up

MicroStrategy has intensified its Bitcoin purchases after announcing plans to raise $42 billion for its digital asset war chest. Its so-called “21/21 Plan” is comprised of $21 billion of equity and $21 billion of fixed-income securities. 

The company made one of its largest-ever purchases in the lead-up to US President Donald Trump’s inauguration, snatching up 11,000 BTC at an average price of roughly $101,191.

MicroStrategy’s biggest BTC buy occurred in November when it acquired 55,000 coins for roughly $5.4 billion.

Elsewhere, Bitcoin miners appear to be taking a page out of the MicroStrategy playbook by building up their own digital asset stockpile. 

“In 2024, a notable shift emerged among Bitcoin miners, with many opting to retain a larger portion of their mined Bitcoin or refraining from selling altogether,” according to a Jan. 7 report by Digital Mining Solutions and BitcoinMiningStock.

Other public companies have also added Bitcoin to their balance sheets, including Semler Scientific, KULR Technology and Metaplanet.

Related: Bitcoin corporate treasury shareholder proposal submitted to Meta

Explore new destinations with ease using the Garmin Drive 52 GPS Navigator! With over 17,988 ratings and a solid 4.4/5-star rating, this GPS system has been a top choice for travelers. Over 500+ units were bought in the past month, all for only $144.99.

This 5″ GPS navigator comes with essential driver alerts, real-time travel data, and external memory storage. The simple on-screen menus and bright, easy-to-see maps make it easy to navigate wherever you are. Plus, it’s road trip-ready with The HISTORY Channel database, featuring notable historic sites and much more to enhance your journey.

Don’t miss out—get your hands on the Garmin Drive 52 today for a smoother ride ahead! Buy Now for $144.99 on Amazon!

Help Power Techcratic’s Future – Scan To Support

If Techcratic’s content and insights have helped you, consider giving back by supporting the platform with crypto. Every contribution makes a difference, whether it’s for high-quality content, server maintenance, or future updates. Techcratic is constantly evolving, and your support helps drive that progress.

As a solo operator who wears all the hats, creating content, managing the tech, and running the site, your support allows me to stay focused on delivering valuable resources. Your support keeps everything running smoothly and enables me to continue creating the content you love. I’m deeply grateful for your support, it truly means the world to me! Thank you!