MicroStrategy Receives Intense Demand for Bitcoin, Increases Purchase to $2 Billion by Quadrupling!
MicroStrategy, the largest institutional player in the crypto world, has increased its new stock offering for purchasing Bitcoin (BTC) to a whopping $2 billion by quadrupling it.
According to information reported by Bloomberg, MicroStrategy, known for its Bitcoin investments, has significantly raised its preferred stock offering named Stretch due to intense demand, which was recently announced. The initial funding target set at $500 million has been raised to $2 billion following a surge in demand. The company has set the offering price per share at $90, which will provide investors with an annual cumulative dividend yield of 9%.
MicroStrategy plans to use all the revenue generated from this capital increase for new Bitcoin purchases. The company currently holds a total of 607,770 BTC, and the current value of these assets has reached approximately $72.4 billion. This amount also corresponds to about 3% of Bitcoin's total supply.
Target of 900,000 Bitcoin
MicroStrategy's Bitcoin moves are also closely monitored by Wall Street. According to TD Cowen analysts, the company could increase its Bitcoin holdings to approximately 900,000 BTC by 2027 thanks to such strategic financing moves. Analysts state that MicroStrategy's strategy of aggressively increasing its Bitcoin accumulation by raising capital at low interest rates justifies the company's market value being higher than the value of its BTC assets.
The company's ordinary shares are currently trading at around $414, while its total market value is approximately $124 billion.
