MicroStrategy has pressed the button for more Bitcoin purchases.

MicroStrategy is preparing to issue $2 billion worth of perpetual preferred stock, planning to expand its investment in the leading cryptocurrency, Bitcoin. The company reserves the right to proceed with or cancel this offering depending on market conditions, reflecting its investment strategies and confidence in the market.

MICROSTRATEGY IS BACK IN ACTION: BILLIONS OF DOLLARS IN BITCOIN INVESTMENT ON THE HORIZON

MicroStrategy, which provides business intelligence solutions, announced that it plans to issue $2 billion worth of perpetual preferred stock to expand its Bitcoin investments. The company's management stated that it reserves the right to withdraw from the issuance if market conditions are not favorable.

Continuing its "21/21" strategy and being the largest institutional Bitcoin investor, MicroStrategy recently announced that perpetual preferred shares could be provided through various methods. These methods include the conversion of Class A common shares, cash dividend payments, and share buybacks.

The planned new issuance will be carried out independently of the company's previously announced goal of raising $21 billion in equity and fixed-income instruments. The issuance, expected to be completed this quarter, aims to strengthen the company's balance sheet and increase Bitcoin purchases.

According to Bitcoin Treasuries data, the number of Bitcoins held by MicroStrategy has reached 446,400. This amount corresponds to a current market value of $43.9 billion. The company made its 257,250 Bitcoin purchase in 2024 at an average price of $62,500 and achieved a return of 57.2% from this investment.

The Bitcoin investment strategy led by Michael Saylor has also positively reflected on the company's shares. MicroStrategy shares rose by 13.2% to $339.6 on January 3, marking a 438% increase in value compared to the same period last year. However, following the announcement of the preferred stock issuance plan, a limited decline of 0.19% was observed in the shares. Nevertheless, preferred stockholders will have priority rights over Class A common shareholders in the event of a potential bankruptcy or liquidation.