Company MicroStrategy Plans to Borrow $4.2 Billion to Invest Further in Bitcoin
In a strategic move, MicroStrategy, a leading business intelligence firm, has announced plans to raise $4.2 billion by selling preferred stock. This move comes following a profitable second quarter and positions the company to potentially acquire a significant amount of Bitcoin.
According to recent filings and announcements, MicroStrategy currently holds 597,325 Bitcoin, worth approximately $64.36 billion, with an unrealized gain of $14.05 billion. The company's Bitcoin holdings now exceed 500,000 Bitcoin.
MicroStrategy has launched a new at-the-market (ATM) preferred stock program, the $4.2 billion STRD preferred series, specifically aimed at funding additional Bitcoin purchases. Apart from this, the company has substantial remaining issuance capacity under its equity programs, with $18.1 billion remaining under the 2025 Common ATM program and $20.5 billion under preferred stock issuance capacity as of June 30, 2025.
Given these figures, MicroStrategy potentially has over $42 billion in capital capacity available for further Bitcoin acquisitions through existing equity and preferred stock issuance programs. At the current Bitcoin price near $108,000, this means the company could potentially purchase close to 389,000 Bitcoin, assuming it dedicates the full available capital to Bitcoin purchases.
This sizable buying capacity positions MicroStrategy to significantly expand its Bitcoin holdings in the future, subject to market conditions and strategic decisions. The company remains cautious and strategic about purchase timing amid Bitcoin's volatility, as evidenced by its temporary purchase pause in early 2025.
In the same quarter, MicroStrategy raised $6.8 billion from various capital market moves, including stock offerings and preferred stock sales. Proceeds from the sale will be used for general business needs, more Bitcoin purchases, supporting working capital, and potentially paying dividends.
The STRD shares, which launched on June 11, have already surged by 6%. The STRD stock program will continue over time and depend on market demand. However, MicroStrategy shares (MSTR) were down 2.72% to $401 in early Monday trading.
Despite a strong quarter, Bitcoin's price has slightly dipped from recent highs. In the last 24 hours, MicroStrategy's Bitcoin holdings dropped by 0.32%, according to Arkham Intelligence. At the time of writing this report, Bitcoin was priced at $108,006, up 2.21% today.
Meanwhile, Semler Scientific, another company, expanded its total Bitcoin holdings to 4,636 BTC. The holding volume in Bitcoin shows a surge in activity, with a 25% increase in volume up to $40 billion, according to CoinMarketCap.
In conclusion, MicroStrategy's substantial capital capacity and strategic approach to Bitcoin investments make it a key player in the Bitcoin market, poised to significantly expand its holdings in the future.
The strategic move by MicroStrategy, with its planned acquisition of Bitcoin, indicates a strong intersection between technology, business, and finance. With its substantial remaining issuance capacity under equity and preferred stock programs, MicroStrategy potentially has over $42 billion in capital capacity available for further Bitcoin acquisitions.
