MicroStrategy Targets $2 Billion Capital Raise for Bitcoin Holdings Under 21/21 Plan

Jan 3, 2025, 09:53 PM

MicroStrategy Inc. has announced plans to raise up to $2 billion through public underwritten offerings of perpetual preferred stock in the first quarter of 2025. This capital raise is part of the company's broader 21/21 Plan, which aims to secure $21 billion in equity and $21 billion in fixed income instruments over the next three years. The perpetual preferred stock will be senior to MicroStrategy's Class A common stock and may feature convertibility to common stock, cash dividend payments, and redemption provisions. The funds raised are intended to strengthen the company's balance sheet and increase its Bitcoin holdings. The final terms of the offering, including the number of depositary shares and the price, have yet to be determined.