MicroStrategy Ups Preferred Equity Sale to $2B to Expand Bitcoin Holdings

Strategy, formerly known as MicroStrategy, has quadrupled its latest preferred equity offering to $2 billion. The Bitcoin treasury firm, leading the corporate BTC market by a long shot, appears to want to continue acquiring Bitcoin in the long term, according to Bloomberg. 

The newly issued Series A Perpetual Stretch shares, priced at $90 each, a 10% discount to face value, come with a 9% initial dividend, making them an attractive yield play for investors bullish on Bitcoin’s long-term trajectory. 

Proceeds from the sale are expected to be reallocated for additional BTC purchases, further cementing Strategy’s position as the largest Bitcoin company. 

Strategy has already acquired $15.76 billion since the start of the year, adding up to a multi-billion digital asset treasury. In total, the company owns 607,770 BTC worth around $71 billion as of today. 

Michael Saylor’s firm is largely attributed to be a pioneer in the institutional crypto adoption market. Since Microstrategy first started accumulating $BTC, several companies have joined the trend, making Bitcoin one of the most sought-after assets for institutional treasuries, hedge funds, and even sovereign wealth strategies.

The company acquired its first Bitcoin in August of 2020, at the time purchasing 21,454 BTC for $250 million when the asset was worth around $10,000 per coin. At the time, the move was seen as particularly risky as Bitcoin and all other digital assets were deemed too volatile to be held on a corporate balance sheet.

Since then, however, Strategy now sits on an unrealized profit worth tens of billions of dollars, and has influenced other companies to pursue the same goal, like Metaplanet, Semler Scientific, and GameStop.

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