MicroStrategy Raises $22.2 Billion via 11.5% Preferred Shares to Buy Bitcoin
MicroStrategy plans to acquire 238,932 more Bitcoin by end-2026 at an estimated $22.2 billion cost to reach a one million coin total. It will fund weekly $540 million purchases through 11.5% “Stretch” perpetual preferred shares and at-the-market equity offerings despite a $75,696 average cost basis.
1. Bitcoin Acquisition Plan
MicroStrategy aims to accumulate 1 million Bitcoin by end-2026, requiring the purchase of roughly 238,932 additional coins at a total estimated outlay of $22.2 billion. Achieving this target demands a sustained buying pace of approximately $540 million per week through December 2026.
2. Funding Mechanisms
The firm will finance the strategy primarily via “Stretch” perpetual preferred shares yielding an 11.5% annual dividend and at-the-market equity offerings. This dual approach is intended to secure large-scale capital without immediately diluting common shares to the same extent as direct stock issuances.
3. Cost Basis Performance
Current treasury holdings stand at 761,068 Bitcoin with an average cost basis of $75,696 per coin, while spot prices hover near $68,100. This gap places the Bitcoin stash about 10% underwater, though the company views price dips as opportunities for low-slippage, high-volume purchases.