MicroStrategy Fuels Bitcoin Purchases with $2B Capital Raise

MicroStrategy, a prominent corporate proponent of Bitcoin, is significantly amplifying its digital asset accumulation strategy by expanding a planned capital raise from an initial $500 million to an estimated $2 billion. This substantial increase reflects robust investor demand and reinforces the company’s aggressive, long-term commitment to Bitcoin as its primary treasury reserve asset.

• MicroStrategy has expanded its planned capital raise from $500 million to an estimated $2 billion.
• The financing is structured as Series A Perpetual Stretch preferred shares, priced at $90 each.
• These shares offer investors a notable 9% annual dividend yield.
• Approximately 5 million shares are slated for issuance, managed by a syndicate of leading financial institutions.
• All net proceeds from this offering are exclusively earmarked for acquiring additional Bitcoin.

Details of the Expanded Capital Offering

The expanded offering involves Series A Perpetual Stretch preferred shares, priced at $90 each – a discount from their $100 nominal value – providing investors with a notable 9% annual dividend yield. According to sources familiar with the matter, including Bloomberg, the pricing for these shares was finalized recently. The transaction is being managed by a syndicate of leading financial institutions, including Morgan Stanley, Barclays, Moelis & Co., and TD Securities, with approximately 5 million shares slated for issuance.

Strategic Positioning of the New Shares

The structure of this new offering provides a strategic advantage for incoming investors. These Series A preferred shares rank senior to MicroStrategy’s existing Strike and Stride preferred shares, as well as its common stock, offering an enhanced level of protection within the company’s capital structure. While subordinate to the older Strife series and existing convertible bonds, their superior ranking compared to prior equity emissions is strategically designed to attract substantial capital from a broad base of institutional investors.

Unwavering Commitment to Bitcoin

Consistent with its stated corporate strategy, MicroStrategy intends to deploy all net proceeds from this offering exclusively towards acquiring additional Bitcoin. Under the leadership of Executive Chairman Michael Saylor, the company has repeatedly utilized capital markets to expand its substantial Bitcoin holdings, positioning itself as a leading institutional holder of the cryptocurrency. This latest financing round underscores MicroStrategy’s unwavering conviction in Bitcoin’s future and its sustained ambition to maintain a vanguard position in the digital asset space.