MicroStrategy Sells 19.5M Preferred Shares to Fund $2B Bitcoin Buy
MicroStrategy sold 19.5 million shares of its Stretch preferred stock to raise $2 billion for a fresh bitcoin acquisition, lifting its holdings to 843,738 BTC valued near $65 billion. The company also repurchased $1.4 billion of 2029 convertible notes and holds $2.2 billion in unrealized tax benefits.
1. Preferred Stock Sale Funds $2B Bitcoin Acquisition
MicroStrategy sold 19.5 million shares of its Stretch preferred stock and a portion of its common stock to raise roughly $2 billion. The proceeds funded a new bitcoin purchase, expanding its digital asset holdings to 843,738 coins valued near $65 billion.
2. Convertible Notes Repurchase
The company repurchased approximately $1.4 billion of its 2029 convertible notes using available cash and proceeds from securities sales. This move reduced its debt obligations and strengthened its balance sheet ahead of potential market fluctuations.
3. Tax Benefits and Future Selling Strategy
Management holds $2.2 billion in unrealized tax benefits and signaled plans to sell higher-cost bitcoin to capture tax losses. This marks a strategic shift from a pure “HODL” approach toward opportunistic trading based on cost basis.