MicroStrategy has further solidified its position as a leading corporate investor in Bitcoin, announcing the acquisition of an additional 130 BTC through a strategic capital raise. In a Form 8-K filing dated March 17, 2025, the company detailed its latest financial maneuvers, emphasizing its continued commitment to Bitcoin accumulation.
The firm utilized proceeds from an At-The-Market (ATM) offering of preferred shares to fund this purchase, raising over a billion dollars without diluting its common stock. This move underscores MicroStrategy’s unwavering confidence in Bitcoin’s long-term value proposition.
Capital Raise Through Preferred Stock Offering
Between March 10 and March 16, 2025, MicroStrategy did not sell any shares of its common stock. Instead, the company focused on its preferred stock issuance strategy to secure capital.
MicroStrategy entered into a sales agreement on March 10, 2025, with several financial institutions, including TD Securities, Barclays Capital, Benchmark Company, and BTIG. The agreement established an ATM offering program for its 8.00% Series A Perpetual Preferred Shares (ticker: STRK), with a total potential offering amount of up to $21 billion.
By March 16, the company had already sold approximately 123,000 of these preferred shares, generating net proceeds of about $1.07 billion. This leaves a substantial remaining capacity of nearly $20.99 billion available for future offerings under the same program.
Reinforcing the Bitcoin Standard Strategy
True to its stated "Bitcoin Standard" strategy, MicroStrategy immediately deployed the capital raised from the preferred stock offering to acquire more Bitcoin.
In the same one-week period, the company purchased 130 Bitcoin at an average price of $82,981 per coin, inclusive of all fees and expenses. The total cost for this acquisition was approximately $10.7 million.
This latest purchase brings MicroStrategy’s total Bitcoin holdings to 499,226 BTC. The company’s cumulative investment in Bitcoin now stands at roughly $33.1 billion, with an average purchase price of approximately $66,360 per Bitcoin. This cements its status as the largest corporate holder of Bitcoin globally and a pioneer in corporate treasury digital asset strategy.
Enhancing Transparency with the Strategy Dashboard
In its commitment to transparency, MicroStrategy highlighted its dedicated "Strategy Dashboard" on its corporate website. This tool is designed to provide investors and the public with real-time access to key company and market data, ensuring compliance with Regulation FD (Fair Disclosure).
The dashboard offers regularly updated information, including:
- The current market price of MicroStrategy common stock and preferred shares.
- Detailed data on Bitcoin purchases and total holdings.
- Key Performance Indicators (KPIs) relevant to the company's strategy.
- Other essential financial and operational metrics.
This initiative allows stakeholders to independently monitor the company’s performance and the value of its substantial digital asset reserve.
MicroStrategy’s recent activities demonstrate a consistent and aggressive approach to expanding its Bitcoin treasury through innovative capital market strategies. Its use of preferred stock offerings provides a non-dilutive method of fundraising specifically for asset acquisition. The company’s bold strategy continues to be a case study for other corporations considering digital assets as a core part of their treasury management.
For those interested in the tactical execution of such a corporate Bitcoin strategy, this approach offers a compelling blueprint. 👉 Explore more corporate treasury strategies
Frequently Asked Questions
What is an ATM (At-The-Market) offering?
An ATM offering allows a publicly traded company to sell shares into the open market gradually over time, at prevailing market prices, rather than in a single, large lump sum. This provides flexibility to raise capital as needed without causing significant immediate price volatility for its stock.
Why does MicroStrategy use preferred stock to buy Bitcoin?
Issuing preferred stock is a strategic financing method that allows MicroStrategy to raise substantial capital without diluting the ownership stakes of its existing common shareholders. The proceeds are then dedicated to furthering its primary corporate strategy of Bitcoin accumulation.
How many Bitcoins does MicroStrategy currently own?
As of March 16, 2025, MicroStrategy and its subsidiaries collectively hold 499,226 Bitcoin. The company consistently provides updates on its holdings through official SEC filings and its Strategy Dashboard.
What is the 'Bitcoin Standard' strategy?
Pioneered by MicroStrategy, the 'Bitcoin Standard' is a corporate treasury strategy that involves holding Bitcoin as the primary treasury reserve asset instead of, or in addition to, traditional cash and cash equivalents. The thesis is that Bitcoin is a superior store of value over the long term.
What is the risk of this strategy?
The primary risk is Bitcoin's inherent price volatility. The value of the company's treasury is directly tied to the market price of Bitcoin, which can experience significant and rapid fluctuations. This could impact the company's reported financial standing and stock price.
Is MicroStrategy’s Bitcoin holding information reliable?
Yes, the company discloses its Bitcoin purchases and holdings in official filings with the U.S. Securities and Exchange Commission (SEC), such as Form 8-K and Form 10-Q. These filings are subject to strict regulatory standards, ensuring the information's accuracy and reliability.