MicroStrategy (MSTR) has significantly increased its fundraising goal for Bitcoin acquisition, now targeting $2 billion.

This move quadruples the company's initial objective and signals a continued aggressive strategy in accumulating the cryptocurrency.

The company is proceeding with the sale of its Series A Perpetual Stretch preferred shares, priced at $90 each, amidst Bitcoin's recent surge to an all-time high of $123,000.

Key Takeaways

• MicroStrategy has quadrupled its Bitcoin fundraising target to $2 billion.
• The company is selling Series A Perpetual Stretch preferred shares at $90 each.
• MSTR stock has seen a year-to-date surge of 42.5%, trading around $417.
• The offering is backed by major financial institutions including Morgan Stanley and Barclays.
• MicroStrategy's total Bitcoin holdings now stand at 601,550 BTC.

Aggressive Bitcoin Accumulation Strategy

MicroStrategy's decision to raise its equity sale target to $2 billion underscores its unwavering commitment to its Bitcoin acquisition strategy.

The company is actively selling its Series A Perpetual Stretch preferred shares, with each share priced at $90.

This expansion of its fundraising efforts comes as Bitcoin continues its upward trajectory, recently reaching a new all-time high of $123,000.

Financial Performance and Market Position

The company's stock has reflected this bullish sentiment, experiencing a substantial 42.5% increase year-to-date.

• As of Thursday, MSTR shares were trading around $417.

The equity offering is being managed by a consortium of prominent banks, including Morgan Stanley, Barclays, Moelis & Company, and TD Securities.

The sale will involve 5 million Stretch shares, a detail confirmed by Bloomberg.

MicroStrategy's Growing Bitcoin Holdings

In its latest acquisition phase, between July 7 and July 13, MicroStrategy purchased an additional 4,225 BTC at an average price of $111,827 per coin.

This latest transaction brings the company's total Bitcoin holdings to an impressive 601,550 BTC.

These coins were acquired at a combined purchase price of $42.87 billion, resulting in an average cost basis of $71,268 per coin.

A Pioneer in Corporate Bitcoin Investment

MicroStrategy began its Bitcoin investment journey in late 2020, employing a diversified funding approach that included common equity, preferred shares, and debt.

This strategy has since been emulated by numerous other companies, though none have matched MicroStrategy's scale of Bitcoin accumulation.

The company remains the largest corporate holder of Bitcoin.

Since Michael Saylor first pivoted the company towards Bitcoin, MSTR's stock price has surged by over 3,500%, significantly outperforming Bitcoin's own approximately 1,100% climb during the same period.

Future Outlook for Bitcoin and MSTR

Analysts anticipate Bitcoin to gain further momentum in 2025.

Current forecasts suggest that entering the market even at its all-time high of $123,091 could be beneficial, with expectations of continued upward movement despite potential short-term fluctuations.

If Bitcoin's price continues to soar, MicroStrategy's substantial holdings are poised to increase significantly in value, potentially driving MSTR shares even higher. Currently, MicroStrategy stock is up 10% over the past month, trading at $417.

Analysts at CNN project potential gains of up to 51% for MSTR shares over the next 12 months, forecasting a price target of $650.00.

Sources:

• ‘Preying on investors’: how software firm MicroStrategy’s big bet on bitcoin went stratospheric
• MicroStrategy, Led by Michael Saylor, Quadruples Stock Raise to $2 Billion to Buy More Bitcoin Holding 607,770 BTC
• Strategy Smashes Fundraising Target: Equity Sale Soars to $2B—4X Original Goal
• Strategy Buys Another $530 Million Worth of Bitcoin
• MicroStrategy’s Preferred Yields 11% as Trading Starts. The CEO Bought Shares