26.07.2025 08:34
MicroStrategy, the firm spearheaded by Michael Saylor and renowned as the world's largest corporate Bitcoin holder, has significantly expanded its preferred equity offering. Initially planned for $500 million, the offering has been dramatically increased to $2 billion, reflecting robust investor enthusiasm and the company's unwavering commitment to Bitcoin acquisition. This substantial increase was reported by Bloomberg.
The company intends to sell its Series A Perpetual Stretch preferred shares at a price of $90 per share, slightly below their $100 face value. Investors will receive an attractive initial dividend yield of 9 percent. The share sale is scheduled to close on Thursday at noon New York time, with a consortium of leading investment banks—Morgan Stanley, Barclays, Moelis & Company, and TD Securities—managing the offering. These new preferred shares will hold a senior position in the capital structure, ranking above common stock and certain other preferred shares, yet subordinate to existing Strife preferreds and convertible bonds.
All proceeds from this ambitious fundraising effort will be directly allocated to further Bitcoin purchases, underscoring MicroStrategy's steadfast dedication to its long-term Bitcoin accumulation strategy. Despite the announcement, MicroStrategy's common stock traded relatively flat at approximately $412.31 per share on Thursday morning in New York, giving the company a market capitalization of around $115 billion. Nonetheless, the stock has demonstrated impressive growth, rising by 42.5% year-to-date through Wednesday's close, according to Bloomberg.
MicroStrategy's Bitcoin holdings now exceed 607,770 BTC, a remarkable accumulation representing over 3% of all Bitcoin ever mined. Their recent purchase of 6,220 BTC for $740 million, completed the week ending July 20th, further solidified their position as the leading corporate Bitcoin investor. Since 2020, the company has financed its Bitcoin acquisitions through a diversified mix of common and preferred stock issuances, and debt financing. This remarkable strategy has fueled a staggering increase of over 3,500% in MicroStrategy's stock price, significantly outperforming the approximately 1,100% rise in the price of Bitcoin itself, and the gains seen by the S&P 500 during the same period.
