MicroStrategy has announced plans to raise up to $21 billion through a stock offering to fund further Bitcoin acquisitions.
The move comes even as the company refrains from making new BTC purchases for the second consecutive week, an unusual pause in its typically aggressive buying strategy.
Led by Michael Saylor, the firm has entered into a sales agreement allowing it to issue and sell shares of its 8.00% Series A perpetual strike preferred stock.
The company stated that the proceeds from this offering would be used for general corporate purposes, including additional Bitcoin purchases and working capital.
The decision to raise such a significant sum underscores MicroStrategy’s continued commitment to Bitcoin as a primary treasury asset.
However, its decision to hold off on fresh acquisitions has raised questions about its strategy.
The company, which recently rebranded as Strategy, has consistently acquired BTC since early 2024 but did not add to its holdings between March 3 and March 9.
BTC price falls amid skepticism over Trump’s crypto reserve plan, MSTR falls too
The price of Bitcoin fell to $81,513 early Monday, down more than 5% over the past 24 hours, on disappointment over President Trump’s plans to establish a Bitcoin strategic reserve, which will be capitalized using Bitcoin obtained through criminal and civil forfeiture proceedings, rather than government buying.
This approach sparked disappointment among investors who had hoped for large-scale government purchases that could drive demand.
The uncertainty surrounding the policy’s impact on Bitcoin liquidity and market stability has contributed to selling pressure.
MicroStrategy, the largest corporate holder of Bitcoin, currently possesses 499,096 BTC, acquired for approximately $33.1 billion at an average price of $66,357 per coin.
Despite the firm’s strong commitment to Bitcoin, its stock price has struggled.
Share price of MicroStrategy (MSTR) fell by over 11% in early trading on Monday. The stock has lost over 15% YTD.
Investors accumulate BTC amid downturn
Despite the market downturn, some institutional investors are using the dip as a buying opportunity.
Crypto analyst Ali Martinez reported that whales have accumulated over 22,000 BTC in the last 72 hours, indicating confidence in Bitcoin’s long-term prospects.
While MicroStrategy’s stock offering signals bullish sentiment, its impact on BTC’s price remains unclear.
The company typically executes its purchases over-the-counter, reducing direct market influence.
However, the potential for increased institutional participation may shape investor sentiment in the coming weeks.
US economy can gain up to $100 tn from crypto policies: Saylor at Crypto Summit
Michael Saylor, executive chairman of Strategy (formerly MicroStrategy), stated at Friday’s White House crypto summit that pro-crypto policies and leadership could potentially add $100 trillion to the US economy over the next decade.
According to Saylor, digital securities alone could boost the US stock market by $20 trillion, while digital currencies could add $10 trillion to US Treasuries.
Additionally, he projected that long-term US capital assets could expand by another $20 trillion.
Saylor also urged the US government to acquire up to 25% of Bitcoin, arguing that such an investment could help address the national debt.
He claimed that if Bitcoin were held as a strategic reserve, it could generate up to $81 trillion for the US Treasury by 2045.
The outspoken Bitcoin advocate emphasized the importance of recognizing the digital asset industry as a legitimate sector that should be treated fairly by government agencies, banks, and insurance firms.
Speaking in Washington, DC, he called for an end to “hostile and unfair tax policies” as well as the alleged debanking of crypto industry participants.
“The government should encourage and provide support for major banks to custody, trade, and finance Bitcoin assets,” Saylor said.
“Debanking of crypto industry participants should not be tolerated.”
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