MicroStrategy has announced plans to raise $21 billion in capital to expand its Bitcoin holdings. The company confirmed this move through an official press release, stating that it intends to generate funds by selling Series A perpetual preferred stock at a nominal value of $0.001 per share.
Strategic Fundraising for Bitcoin Expansion
According to the March 10, 2025 press release, the sale of shares will take place in a phased and strategic manner, considering market conditions, price fluctuations, and trading volumes. The majority of the raised capital will be allocated to Bitcoin purchases, while the remaining portion will support MicroStrategy’s operational activities.
This announcement comes just days after MicroStrategy’s unusual pause in Bitcoin acquisitions, which sparked speculation among market observers. The company, known for its regular BTC purchases, had not made a new acquisition in the past week, making this capital raise even more noteworthy.
MicroStrategy’s Growing Bitcoin Portfolio
Under the leadership of founder Michael Saylor, MicroStrategy currently holds 499,096 BTC, with a total acquisition cost of $33.1 billion. The company’s average purchase price stands at $66,357 per Bitcoin.
Market Reactions: Bitcoin Rises, MSTR Shares Drop
Despite the bullish nature of MicroStrategy’s announcement, its stock (MSTR) did not react positively. Pre-market trading saw MSTR shares drop by over 5% to $271, continuing a downward trend that has led to a 14% decline over the past month.
On the other hand, Bitcoin surged to $84,000 following the news. However, since MicroStrategy typically conducts its Bitcoin purchases through over-the-counter (OTC) markets, the direct impact on BTC’s price is expected to be limited.
Crypto analyst Ali Martinez pointed out that institutional investors view such dips as buying opportunities. Reports indicate that whales have accumulated over 22,000 BTC in the past three days, signaling long-term confidence in Bitcoin.
Stay tuned to Turkish NY Radio for more updates on institutional investments in cryptocurrency.
