MicroStrategy Secures $563M to Acquire Additional Bitcoin

Business intelligence company MicroStrategy has secured $563 million in funding to expand its already substantial crypto portfolio further. The tech giant, known for its aggressive bitcoin (BTC) strategy, will use the funds to acquire more BTC, reinforcing its position as one of the largest institutional holders of the crypto asset.

MicroStrategy plans to raise the funds through a public offering of its Perpetual Strike Preferred Stock (STRK). The BTC holder disclosed the pricing of the offering at $80 per share for a total of 7.3 million shares of STRK.

According to the firm, the offering is scheduled to take place on February 5, 2025, pending customary closing conditions. Any remaining funds will be allocated to general corporate purposes.

In line with the STRK pricing, after accounting for underwriting discounts, commissions, and other offering expenses, the tech firm expects to net approximately $563 million. 

MicroStrategy Paves the Way

MicroStrategy, a major corporate buyer of BTC since 2020, continues to focus on the digital asset as a key component of its financial strategy. CEO Michael Saylor has been vocal about the company’s long-term belief in bitcoin’s potential, positioning the crypto as a critical hedge against inflation and a store of value in uncertain economic times.

The decision to raise capital through the issuance of STRK stock reflects MicroStrategy’s ongoing preference for creative financial structures. By tapping into the market for preferred stock, the company generates significant capital without issuing additional common equity, allowing it to fund its BTC acquisitions while maintaining control over its existing shareholder structure.

Firms Buying Big

Over the years, the company has paved the way for other institutions to adopt its buy-and-hold strategy. Its consistent purchases have placed significant value on the digital asset, making it highly sought-after by retail and institutional investors. 

Despite the recent market correction and other factors that could influence the asset’s price, the tech giant is not slowing down in its BTC buy. Just recently, the firm acquired bitcoin worth $1.1 billion. The purchase pushed the company’s total BTC holdings to over 471,107 BTC, acquired for approximately $30.4 billion at a price of $64,511 per bitcoin.

In a similar move, Japanese investment firm Metaplanet plans to raise 116.65 billion Japanese Yen (over $746 million) to acquire more bitcoins between 2025 and 2026. The announcement follows the venture capital firm’s reveal of its Bitcoin Plan for 2025-2026, underscoring its dedication to promoting BTC adoption both in Japan and worldwide.