MicroStrategy Targets $2 Billion Capital Raise. It's All to Buy More Bitcoin. — Barrons.com
By Emily DattiloMicroStrategy is targeting a capital raise of up to $2 billion to continue to strengthen its balance sheet and acquire more Bitcoin, the business software company announced.The capital raise will be through one or more public underwritten offerings of perpetual preferred stock, which may include features such as convertibility to class A common stock and payment of cash dividends, MicroStrategy said in a press release."The number of depositary shares representing an interest in the perpetual preferred stock to be offered, the final terms of the perpetual preferred stock, and the price for the Offering have not yet been determined," the company wrote, adding that the offering is expected to occur, if at all, in the first quarter.This announcement builds upon a previously announced 21/21 plan from MicroStrategy, which aims to raise $21 billion of equity and $21 billion of fixed income instruments, including debt, convertible notes and preferred stock, over the next three years.MicroStrategy is the world's largest corporate holder of Bitcoin, with just more than 2% of the Bitcoin outstanding — a stake now worth about $42 billion, according to Andrew Bary of Barron's.Over the last 24 hours, Bitcoin has slipped 0.1% to $97,794.Write to Emily Dattilo 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.