With a total Bitcoin holdings of 471,107 BTCs, which is worth more than $49 billion, MicroStrategy controls around 2.24% of BTC’s total supply.
MicroStrategy Inc (NASDAQ: MSTR), the leading publicly traded company with the largest Bitcoin BTC $68 205 24h volatility: 1.6% Market cap: $1.37 T Vol. 24h: $28.23 B trove, has released a detailed plan to raise more funds from the global capital market. The large-cap company, with a total valuation of about $85 billion at the time of this writing, has set the pricing of the 7.3 million shares of the Perpetual Strike Preferred Stock at $80 per share.
MicroStrategy intends to sell 8% of the Series A Perpetual Strike Preferred Stock to raise around $563.4 million. As Coinspeaker previously noted, MicroStrategy intended to raise a total of $250 million from selling a 2.5 million $STRK [NC] stock offering.
However, the company has experienced a sharp uptick in demand for the STRK from its shareholders to gain an indirect exposure to Bitcoin’s volatility. The company announced that the sale of the Perpetual Strike Preferred Stock will settle on February 5, 2025, to enable the acquisition of more Bitcoins.
As for the potential investors seeking to purchase MicroStrategy’s STRK, the liquidation preference will be $100 per share and accumulate dividends at a fixed rate of 8% per annum.
MicroStrategy Bitcoin Plan
MicroStrategy has experienced a huge turnaround in its stock market performance since adopting a Bitcoin strategy for its treasury. As of this writing, the company’s Bitcoin trove of about 471,107 BTCs represented 57.32% of its market cap.
Year-to-date, MicroStrategy has reported a BTC Yield – a measure that shows percentage change of the ratio between a company’s BTC trove to its assumed diluted shares outstanding, of about 2.9%.
Backed by reputable global investors led by Capital Group with over $2 trillion in AUM and Norges Bank with over $1.7 trillion in AUM MicroStrategy is well positioned to grow its BTC holdings to a million in the near term.
Furthermore, more investors have identified Bitcoin as a better store of value than Gold, especially amid the long term macroeconomic uncertainty.
Market Impact
The company’s unwavering support for Bitcoin in the past few years has helped attract more institutional investors. As a result, the demand for Bitcoin has continued to grow exponentially on a fixed supply of 21 million. With around 2.17 million BTCs available on centralized exchanges for sale and around 1 million units left to be mined, the rising demand will have a bullish impact in the long haul.
According to a peer-reviewed paper co-authored by Murray Rudd, Bitcoin price is en route to surpass $1 million by 2027, with a potential to hit multi-million by 2030. The projected Bitcoin rally will further be fueled by the anticipated adoption by nation-states in the near future led by the United States at the Federal government level and the state level.
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