- MicroStrategy expands Series A offering to $2 billion for Bitcoin purchases.
- Company plans discounted sale of five million shares priced at $90.
- Current Bitcoin stash tops $72 billion, with 6,220 BTC just added.
MicroStrategy is once again making headlines. This time, the company has boosted its latest Series A perpetual preferred stock offering, known as “Stretch,” from $500 million to a massive $2 billion. This is another aggressive step by the company to increase its Bitcoin holdings.
MicroStrategy Offers 5M STRC Shares, Aims to Grow $72B BTC Hoard
According to Bloomberg, MicroStrategy will offer five million shares at the price of $90. This price is reported to be a discounted price. The firm intends to spend the funds on acquiring additional Bitcoin as well as financing other business objectives.
It is important to note that Bloomberg also reported that the company MicroStrategy is currently in possession of nearly 607,770 Bitcoin. That warehouse is valued at more than $72 billion at the present price of Bitcoin. Only this week, the company purchased an additional 6,220 BTC at approximately 740 million dollars. This indicates the seriousness of MicroStrategy with regards to the Bitcoin strategy.
In perspective, MicroStrategy possesses over a dozen times the amount of Bitcoin that MARA Holdings holds. The second biggest corporate owner of BTC is MARA. Even though MARA has also announced that it would raise $850 million to buy more Bitcoin, it still has a lot to go. MicroStrategy is still the corporate Bitcoin leader in terms of treasury.
Moreover, the new STRC shares will outrank some of the other preferred shares offered by MicroStrategy, such as Strike and Stride. However, they will fall behind the company Strife’s preferred stock and its outstanding convertible bonds. This ranking system will aid MicroStrategy in maintaining equilibrium between its financial risk and continuing its mission of purchasing Bitcoin.
Institutions Back MicroStrategy’s Bold Bitcoin Buying Plan
Remarkably, it is not the first time that MicroStrategy has increased the number of its stock offerings to buy Bitcoin. The company has already done this a few times before. The aim has always been the same: to purchase additional Bitcoin and reinforce its status as the largest corporate owner of BTC in the world.
Moreover, the new shares apparently are of interest to several large companies such as Morgan Stanley, Barclays PLC, and TD Securities. It is an indication of high interest among institutional investors who are confident in the strategy that MicroStrategy has.
This latest move, however, has a degree of mystery attached to it. The final press release by the company mentioned only the initial offering of 500 million dollars. The upgrade has been worth 2 billion dollars since then, and this is something that the company and its founder, Michael Saylor, have not spoken publicly about. Both sides have been vocal on the social media platform but they have remained silent on this particular development.
Despite this, Bloomberg notes that MicroStrategy’s strategy shows its ability to adjust to investor demand. This allows the company to issue stock at flexible structures and generate funds out of it without angering its stockholders. Meanwhile, its governance practices attract legal issues to the company. These conflicts point out the danger of operating such an aggressive bitcoin strategy within an ever-evolving industry.
In the future, the ambitious moves seem to imply that MicroStrategy is not slowing down. The company is already in a good position to achieve its target of owning and staking five percent of the total Bitcoin in circulation. If it succeeds, this would be one of the greatest achievements for MicroStrategy as well as the crypto sphere.
