MicroStrategy Oversubscribes Convertible Preferred Stock Offering by 3X, Raises $584M to Buy More Bitcoin (BTC)

MicroStrategy's recently-announced perpetual convertible preferred stock offering has been oversubscribed by nearly 3 times the expected volume of 2.5 million shares.

MicroStrategy’s perpetual convertible preferred stock offering has been oversubscribed by nearly 3 times the expected volume.

An automated alert sent out by Fidelity Investments on January 30, 2025 revealed that $STRK raised at least $584 million as against the expected $200 million, with a final offering size of 7.3 million shares priced at $80 each.

The strong share offering performance extends the company’s winning streak under the leadership of chairman Michael Saylor whose famously all-in approach to Bitcoin (BTC) investment has seen MicroStrategy amass $30.4 billion in Bitcoin since 2020. Earlier in January, the company announced the purchase of a further $1.1 billion in BTC, alongside the launch of $STRK for the express purpose of buying more Bitcoin.

$MSTR today announced the launch of $STRK, a new convertible preferred stock offering available to institutional investors & select retail investors. To view the investor presentation video, learn more about participating, & access key details, click here.

At the start of the year, the company announced plans to raise up to $2 billion of preferred stock during Q1 2025 as part of its 21/21 plan to raise $21 billion of equity and $21 billion of fixed income instruments, including debt, convertible notes and preferred stock between 2025 and 2028.

In an analysis of MicroStrategy earlier this month, Mizuho Securities said that the company’s stock has 51 percent upside due to its unique position of being deeply entrenched in traditional markets, which gives it access to debt and equity capital markets that it leverages for funds to purchase Bitcoin. An excerpt from the report reads:

The expectation that the company will continue to snap up more digital currency, coupled with anticipated Bitcoin price appreciation, gives MicroStrategy a 75% premium to the underlying value of its Bitcoin holdings.

According to Mizuho, this unique mix of circumstances alongside the “more hospitable political environment” for cryptocurrency investment under U.S. president Donald Trump, means that MicroStrategy will be able to keep growing its BTC reserves faster than its stock market offerings can dilute its shares.