The funds will be used to strengthen the company’s balance sheet and further expand its Bitcoin holdings, in line with its ambitious “21/21” strategy.
This new offering is separate from MicroStrategy’s ongoing efforts to raise $21 billion in equity and $21 billion in fixed-income instruments, the business intelligence firm clarified in a January 3 statement.
In recent months, MicroStrategy has used senior convertible notes and other debt instruments to fund its aggressive Bitcoin acquisition strategy. The perpetual preferred stock offering is expected to occur within the current quarter, though its completion will depend on market conditions and the company’s discretion.
“MicroStrategy may choose not to proceed with or finalize the offering at all,” the company noted.
The offering is classified as “senior” to MicroStrategy’s Class A common stock, meaning holders would have priority in the event of bankruptcy or liquidation.
