Archive · 16 Aug 2025
MicroStrategy's Bold Bet: Financing Bitcoin's Future
MicroStrategy, a company that owns a lot of Bitcoin, is changing how it gets money.
They are selling a special kind of stock called "perpetual preferred stock."
It's like getting a loan but with no end date.
The company hopes to use the money to buy even more Bitcoin.
This new plan could raise a lot of money if people buy the stock.
But, if Bitcoin's price drops or people stop buying the stock, the company could have trouble paying back the investors.
Some experts are worried, but the company believes in its strategy, hoping that Bitcoin's value will keep going up.
MicroStrategy, led by Michael Saylor, is shifting its financing strategy to perpetual preferred stock to buy more Bitcoin.
The company has already raised around $6 billion this year through preferred offerings, with a recent $2.5 billion tranche.
This move aims to retire convertible notes and reduce common stock sales, building a more resilient capital structure.
Critics warn of high dividend payouts and potential burdens if Bitcoin's price drops and investor interest wanes.
Success hinges on Bitcoin's value and sustained investor confidence in the face of market risks.
- Who
- Michael Saylor, Strategy Inc. chairman, is leading this financing experiment.
- What
- MicroStrategy is changing its financing model to buy more Bitcoin through perpetual preferred stock.
- When
- Since the start of 2024
- Where
- N/A
- Why
- To build a more resilient capital structure, retire convertible notes, and continue acquiring Bitcoin.
Supporters
Critics
Financial Risk
Supporters
The preferreds are a clever way to keep crypto buying.
Critics
The payouts are costly and could become a burden if Bitcoin’s price turns.
- Company
- MicroStrategy (Strategy Inc.)
- Leader
- Michael Saylor
- Financing Instrument
- Perpetual preferred stock
- Bitcoin holdings
- World's largest corporate holder
- Raised in 2024
- $6 billion
- Latest Tranche
- $2.5 billion