MicroStrategy files Form S-3 to expand Bitcoin holdings

MicroStrategy has submitted a Form S-3 to the U.S. Securities and Exchange Commission (SEC) with plans to raise funds aimed at increasing its Bitcoin (CRYPTO:BTC) holdings and addressing corporate needs.

The filing, dated January 27, 2025, signifies a strategic shift in the company’s approach to funding through various financial instruments.

MicroStrategy intends to issue bonds, Class A common stock, preferred shares, depositary receipts, warrants, and hybrid security units as part of this initiative.

This move underscores MicroStrategy's commitment to Bitcoin and its position as a leader in corporate cryptocurrency adoption.

The filing also introduces “Strike Preferred Stock,” a new convertible preferred stock under the ticker STRK.

These preferred shares will offer an attractive yield of 8% with an initial price of $100 per unit.

At a valuation of $1,000 per unit, these shares can be converted into common stock, which is currently priced lower.

This strategy aims to attract both individual and institutional investors who seek exposure to Bitcoin while minimising volatility.

In addition to the securities offering, MicroStrategy recently announced the acquisition of 10,107 BTC for approximately $1.1 billion, bringing its total Bitcoin holdings to over 470,000 BTC.

This accumulation reflects the company's ongoing belief in Bitcoin as a viable store of value and hedge against inflation.

MicroStrategy's approach highlights its long-term optimism regarding Bitcoin's potential as an investment vehicle.

As the company navigates this funding phase, it remains focused on expanding its Bitcoin portfolio while addressing its corporate financial requirements.

The broader implications of this strategy may influence market perceptions of Bitcoin's stability and growth potential in the coming years.

At the time of reporting, the Bitcoin (BTC) price was $102,739.