MicroStrategy (MSTR, Financial), a major corporate Bitcoin holder, is raising funds through high-priced stock issuance to purchase more Bitcoin. Led by Chairman Michael Saylor, the company is expanding its Bitcoin reserves via stock and bond sales. Since the end of Q3, MicroStrategy has capitalized on rising stock prices, issuing stocks to fund Bitcoin investments. The stock price has surged about 500%, significantly outpacing Bitcoin's 125% increase, with a current price of approximately $383, valuing the company at $90 billion.
MicroStrategy has issued around $10.5 billion in stocks as part of a $42 billion financing plan, including $21 billion in stocks and $21 billion in bonds for Bitcoin purchases. Nine underwriters, including TD Securities and Barclays, facilitated the stock sales. The company also plans to issue $21 billion in bonds, offering underwriters additional revenue.
Recently, MicroStrategy purchased $1.5 billion in Bitcoin, funded by stock sales, increasing its holdings to 402,100 Bitcoins, representing 2% of global supply. This growth surpasses the 15% increase in diluted shares, now at 270 million shares. The company aims to complete its stock sales by Q1 2025, earlier than the initial 2027 target.
