Another day, another $543 million to plow into Bitcoin. With 471,107 BTC on the balance sheet so far, MicroStrategy is the largest corporate holder of the number-one crypto, falling short only of Binance, U.S. spot Bitcoin ETFs, and Satoshi Namakoto himself. For his part, former MicroStrategy CEO and vocal Bitcoin advocate Michael Saylor is vying for the top spot in the HODLers’ Hall of Fame for the largest cojones.
Series A perpetual preferred stock
The publically-traded U.S. software company will raise the funds to buy bitcoin through the sale of 7.3 million shares of its 8.00% Series A perpetual preferred stock, which it anticipates will generate the funds (around $563 million) to fuel the company’s aggressive bitcoin acquisition strategy.
According to the January 31 2025 release, the preferred stock offering is expected to settle on February 5 and will provide MicroStrategy with a significant war chest to pursue its goals.
A price target of $49 million per bitcoin
Recently laying out his 21-year outlook for Bitcoin, Saylor confidently predicted a “bear case” of $3 million per coin and a “bull case” of $49 million, assuming a 21% and 37% annual growth rate respectively—far lower than Bitcoin’s 60% annual growth rate over the past decade.
At a time when the tailwinds for Bitcoin have never been so blustery, even a nation-state race to accumulate the asset fails to nudge most Bitcoin bulls’ price needle as high as $49 million but Saylor isn’t most Bitcoin bulls. And MicroStrategy isn’t like most software corporations.
Its decision to use the proceeds to buy up more bitcoin is perhaps the clearest indication yet of its confidence in the asset’s long-term potential and staggering growth in value.
$100 per share with dividends of 8% per annum
MicroStrategy’s perpetual preferred stock will have a liquidation preference of $100 per share and accumulate cumulative dividends at a fixed rate of 8.00% per annum. Perpetual preferred stock holders will have the right to convert their shares into MicroStrategy’s class A common stock at an initial conversion rate of 0.1000 shares per share.
The offering is managed by a syndicate of banks including Barclays, Moelis & Company LLC, BTIG, TD Cowen, and Keefe, Bruyette & Woods—none of which hold any bitcoin as a balance sheet asset for the time being.
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