MicroStrategy Completes $21B Stock Offer to Fund Bitcoin Buys. What's Next.

Mackenzie TatananniMicroStrategy snapped up even more Bitcoin and exhausted its 2024 at-the-market common stock offering.The company, which does business as Strategy, bought 1,895 Bitcoins for a total purchase price of $180.3 million, or around $95,167 per Bitcoin, from April 28 through May 4. Strategy disclosed the transactions in a form filed with the Securities and Exchange Commission on Monday.The latest purchase brought the company's total holdings to 555,450 Bitcoins purchased for a total of $38.08 billion, or around $68,550 each.The world's largest corporate holder of Bitcoin also noted the completion of its common equity at-the-market offering, an initial $21 billion program established in October 2024.Strategy sells equity, debt, and preferred stock to fund Bitcoin purchases and is planning more sales through a new $21 billion 2025 ATM offering of common shares.Strategy unveiled its "42/42 Plan" last week, saying it aims to secure a total of $84 billion of capital over the next two years to support its Bitcoin treasury operations.The announcement came just six months after Strategy introduced a so-called 21/21 Plan with the goal of raising $21 billion through equity offerings and another $21 through fixed-income securities.The latest $42 billion increase leaves $56.7 billion to raise by December 2027. TD Cowen analysts said Monday that they expect Strategy to "move expeditiously" in the coming weeks. "We expect usage will commence in the near term," the analysts wrote.They noted that issuance on the company's other at-the-market offering, its STRK convertible preferred equity ATM, accelerated over the past week to $51.8 million, representing "a new high-water mark for the company."Shares of the software company tumbled 4% to $378.58 on Monday. The S&P 500 and tech-heavy Nasdaq Composite were down 0.4% and 0.6%, respectively.Also falling was the price of Bitcoin, which was down 1.6% over the past 24 hours to $94,068, according to CoinDesk data.Write to Mackenzie Tatananni at [email protected] content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.