MicroStrategy Expands Bitcoin Holdings for 9th Week in a Row, Announces $2B Preferred Stock Offering

MicroStrategy (MSTR) has maintained its consistent buying trend, acquiring bitcoin for the ninth consecutive week, further solidifying its position as the largest corporate holder of the cryptocurrency.

In its latest purchase, MicroStrategy added 1,020 BTC for $101 million during the week ending January 5, increasing its total bitcoin holdings to 447,470 BTC.

As has become customary, Executive Chairman Michael Saylor teased the announcement on X, revealing that the average purchase price for the new bitcoin was $94,004, bringing the overall average purchase price to $62,503 per BTC.

After experiencing a significant decline of nearly 50% from its November 21 high of $543, MicroStrategy’s stock price bounced back on Friday, gaining 13%. Pre-market trading showed the stock up 2%, sitting around $353.

In addition to the bitcoin purchase, MicroStrategy unveiled plans to raise up to $2 billion via a preferred stock offering. This offering is separate from the company’s “21/21 Plan,” which aims to raise $21 billion in equity and $21 billion in fixed-income capital.

The preferred stock offering will take priority over MicroStrategy’s Class A common stock and could feature terms such as the option to convert to common stock, payment of cash dividends, and the ability for share redemption. While the specifics of the offering’s terms and pricing have yet to be finalized, the offering is expected to occur in Q1 2025. The funds raised will be directed towards further bitcoin acquisitions.