MicroStrategy's $1B Stock Offering Fuels Bitcoin Buying Spree
MicroStrategy Signals Further Bitcoin Purchases
Michael Saylor, MicroStrategy's executive chairman, recently hinted at another Bitcoin (BTC) acquisition, posting "Send more Orange" on X (formerly Twitter). This cryptic message, typical of Saylor's communication style, often precedes announcements of significant BTC purchases. If this prediction holds true, it would mark the company's ninth consecutive week of Bitcoin acquisitions.
This follows MicroStrategy's recent purchase of 705 BTC between May 26 and June 1, costing approximately $75 million at an average price of $106,495 per coin. This brings their total holdings to 580,955 BTC, currently valued at roughly $61.4 billion. According to SaylorTracker, this represents an unrealized profit of approximately $20.6 billion, or roughly a 50% return on investment.
Source: SaylorTracker
$1 Billion Stock Offering to Fuel Bitcoin Purchases
MicroStrategy's announcement of a $1 billion stock offering further reinforces its commitment to Bitcoin. This offering, significantly larger than its initially announced $250 million raise, will primarily fund additional Bitcoin purchases and general corporate expenses. The offering consists of 11.76 million shares of its 10.00% Series A Perpetual Stride Preferred Stock, priced at $85 per share. After expenses, MicroStrategy expects to raise approximately $979 million.
This preferred stock offers a 10% non-cumulative dividend, aiming to attract institutional investors seeking yield. This strategy offers more predictable returns compared to previous funding methods, while enabling MicroStrategy to maintain its aggressive Bitcoin acquisition strategy.
MicroStrategy: The Largest Known Bitcoin Holder
MicroStrategy remains the largest publicly known holder of Bitcoin, surpassing the combined holdings of the United States and China. Its holdings are nearly 12 times larger than the second-largest holder, Bitcoin miner Marathon Digital Holdings. This positions MicroStrategy as a significant player in the Bitcoin market and a key indicator of investor sentiment.
Many view MicroStrategy as a vehicle for indirect Bitcoin exposure, further highlighting the company's influence and the growing institutional interest in Bitcoin.
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