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coinpedia 2025-01-04 06:26:17

MicroStrategy Plans $2 Billion Fundraising Through Convertible Bonds

The post MicroStrategy Plans $2 Billion Fundraising Through Convertible Bonds appeared first on Coinpedia Fintech News Michael Saylor, the company’s co-founder and executive chairman, has been a strong supporter of Bitcoin. He sees it as a valuable long-term asset and has made it a central part of MicroStrategy’s strategy. Despite the ups and downs of the market, MicroStrategy’s focus on expanding its Bitcoin reserves remains strong. The timing is perfect as Trump’s aggressive push towards Bitcoin Reserve plan may give tough competition to Microstrategy later. MicroStrategy’s “21/21 Plan This plan is part of MicroStrategy’s “21/21 Plan ,” a bold strategy to raise $21 billion through stocks and another $21 billion through loans and other financial tools over three years. Since starting this plan in October 2024, the company has already bought 194,180 Bitcoin—almost halfway to its goal. These Bitcoins are currently worth $19 billion. As of January 3, 2025, MicroStrategy owns 446,400 Bitcoin, valued at about $43.7 billion. This massive holding has earned the company unrealized gains of $16 billion. Impressively, MicroStrategy’s stock, MSTR, performed better than Bitcoin itself in 2024 and was recently added to the Nasdaq index. The new $2 billion stock offering is expected to happen in early 2025, depending on market conditions. At the same time, MicroStrategy is asking shareholders to approve increasing the number of shares it can issue. This includes raising its common stock limit from 330 million to 10.3 billion and its preferred stock limit from 5 million to 1 billion. A shareholder meeting will be held to discuss these changes. .article-inside-link { margin-left: 0 !important; border: 1px solid #0052CC4D; border-left: 0; border-right: 0; padding: 10px 0; text-align: left; } .entry ul.article-inside-link li { font-size: 14px; line-height: 21px; font-weight: 600; list-style-type: none; margin-bottom: 0; display: inline-block; } .entry ul.article-inside-link li:last-child { display: none; } Also Read : Bitcoin Adoption Set to Skyrocket as 13 U.S. States Explore Strategic Reserves , Raising Capital for Bitcoin Acquisitions By raising more money and buying more Bitcoin, MicroStrategy is doubling down on its belief in the future of cryptocurrency. To support its Bitcoin buying strategy, MicroStrategy recently filed with the SEC to seek approval for issuing billions of new shares. The proposal aims to increase the company’s Class A common shares from 330 million to 10.33 billion and its preferred shares from 5 million to 1.005 billion. This move is designed to raise the necessary capital to fund further Bitcoin acquisitions. Trump has planned a bullish year for crypto and if he become successful in his 100days of taking a charge in Whitehouse it will be a major push for Bitcoin. 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updateSubscriptionButton(); } } }); FAQs What is MicroStrategy’s 21/21 Plan? MicroStrategy’s 21/21 Plan aims to raise $42 billion to buy Bitcoin, with $21B from stocks and $21B through loans over 3 years. How much Bitcoin does MicroStrategy own? As of January 3, 2025, MicroStrategy owns 446,400 Bitcoin, worth approximately $43.7 billion, gaining $16 billion in unrealized profits. How could Trump’s Bitcoin plan impact MicroStrategy? Trump’s push for a Bitcoin Reserve may create competition for MicroStrategy, influencing Bitcoin market dynamics and potentially boosting prices.

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