MicroStrategy Is Raising $584 Million to Stack Even More Bitcoin

Bitcoin treasury company MicroStrategy keeps coming up with new ways to buy more Bitcoin. The company on Friday announced it has finalized the price of its new stock—STRK—which it will use to raise funds to amass even more Bitcoin for its treasury.

STRK will go on the market for $80 per share, and the company hopes to use the proceeds to buy Bitcoin. MicroStrategy co-founder and chairman Michael Saylor announced on X, formerly Twitter, that the company had upsized the deal from raising $250 million to $584 million.

In a statement, the firm said that it expects to end up with net proceeds of $563.4 million from the sale, which will go towards "general corporate purposes, including the acquisition of Bitcoin and for working capital."

Just last week, the company’s shareholders voted for a 30x increase to the number of authorized Class A common shares so that the company could have more resources to buy the cryptocurrency. The logic is that with more shares on the market, there will be more sales, and thus more money to buy Bitcoin.

MicroStrategy Buys the Top, Adding $1.1 Billion in Bitcoin Ahead of Price Plunge

Bitcoin development company MicroStrategy has bought the top—again—spending over $1 billion on the biggest cryptocurrency ahead of its Monday plunge. The firm’s Bitcoin preacher, co-founder and Executive Chairman Michael Saylor, said Monday that the company had spent around $1.1 billion buying 10,107 Bitcoin at the average price of $105,596 per coin over the past week. Bitcoin is now trading for about $100,700 after dropping as low as $98,380 Monday morning New York time, according to CoinGecko....

MicroStrategy last year announced a “21/21 Plan” to raise $42 billion to buy even more Bitcoin. The plan would see the firm raise $21 billion via equity, with another $21 billion coming by selling fixed income securities.

This is because the company has gone from mainly selling data analyzing software to securitizing Bitcoin: It buys and holds the cryptocurrency, while investors buy shares of MicroStrategy to get exposure to the orange coin without actually handling it.

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The company has taken a huge amount of debt to do so, too. 

And it’s risky, say some analysts—but so far, so good: MSTR was trading for $14.44 the day the company announced its first Bitcoin buy in August 2020. Nasdaq data shows it’s today trading for $340—a 2,250% increase.

MicroStrategy currently holds 471,107 Bitcoin, or over $48 billion worth at the current price.

Edited by Andrew Hayward