MicroStrategy Plans 10B Share Offering to Buy Bitcoin

MicroStrategy, a leader in Bitcoin corporate holdings, is making a bold move. The company plans to boost its MSTR share count to 10 billion. This action will help fund further Bitcoin purchases. If approved, this decision could dramatically reshape the company’s future and deepen its commitment to Bitcoin.

Expanding Shares to Fuel Bitcoin Growth

MicroStrategy filed a proposal with the U.S. Securities and Exchange Commission (SEC) to increase its shares significantly. The plan calls for the class A common stock to rise from 330 million to 10.3 billion. 

Additionally, preferred stock would expand from 5 million to 1 billion shares. With this increase, the total share count would exceed 11 billion. This move aligns with the company’s goal to raise $42 billion to buy more Bitcoin.

The ‘21/21 Plan,’ announced in October 2024, is at the heart of the strategy. MicroStrategy hopes to raise the funds through a mix of equity issuance ($21 billion) and convertible notes ($21 billion) over the next three years. 

Market Reactions and Impact on Stock

The announcement has sparked mixed reactions. Some analysts believe the move could drive up Bitcoin prices. Joe Burnett, director of market research at Unchained, stated that more Bitcoin purchases could push prices higher. 

Since the ‘21/21 Plan’ launch, MicroStrategy has bought 192,042 Bitcoins. The latest acquisition, 5,262 BTC, occurred on December 23, bringing the company’s total to 444,262 BTC. This is valued at nearly $42 billion based on current prices.

Following the announcement, MicroStrategy’s stock surged by 11%. Yet, the price has since dropped by 40%, as Bitcoin corrected from $108K to $92K. Still, the company has enjoyed a 263% year-to-date (YTD) gain.