MicroStrategy Inc. MSTR is exploring perpetual preferred stock as a new financing instrument to fuel its ongoing Bitcoin acquisition strategy, according to insights shared by Executive Chairman Michael Saylor.
What Happened: At a recent investor meeting hosted by The Benchmark Company, Saylor explained that MicroStrategy is looking to raise $2 billion through one or more perpetual preferred stock offerings in the first quarter of 2025, subject to market conditions.
This move is intended to provide investors with leveraged exposure to Bitcoin.
The meeting also covered the company’s approach to capital raising, as well as Saylor’s expectations around upcoming legislative changes within the cryptocurrency market.
MicroStrategy aims to offer returns and volatility at 1.5x those of Bitcoin itself, making perpetual preferred stock a more attractive instrument to create “intelligent leverage” due to its lack of a set maturity date, and mitigating long term liquidity risk.
Saylor emphasized that this new instrument would introduce a unique option to a market he described as “broken” and “dead money”.
If the preferred stock were convertible into MicroStrategy’s common shares, it could offer investors a unique option, an embedded call on a company’s valuation almost entirely derived from a highly volatile cryptocurrency.
The meeting also shed light on MicroStrategy’s recent Bitcoin purchases, which now total approximately 450,000 Bitcoin with a market value of ~$41.1 billion, marking the 10th consecutive week of purchases.
Saylor explained that the company’s decisions regarding the timing and amounts of both securities issues and Bitcoin purchases have both “programmatic and opportunistic elements”, responding to market “moods”.
Also Read: Will El Salvador Install Bitcoin Nodes In Every Household?
Why It Matters: The investor meeting occurred a week before the Trump Administration’s incoming term, and Saylor stated that he believes the new administration would be supportive of the crypto industry.
This support could also be a key factor that could increase demand for Bitcoin.
Saylor also highlighted the significance of the potential repeal of the SEC’s Staff Accounting Bulletin 121 (SAB 121), which currently limits banks from providing digital asset custody services.
Saylor believes a repeal could occur during the first week of the Trump administration, thus enabling banks to serve as custodians and promote institutional adoption.
While Saylor did not comment specifically on the likelihood of the U.S. establishing a strategic bitcoin reserve, he highlighted the fact that such discussions are even taking place as a notable shift, considering questions posed just 48 months ago about a potential U.S. government ban on Bitcoin.
The Benchmark Company reiterated its Buy rating on MSTR, with a price target of $650, based on a sum-of-the-parts analysis including the projected value of the company’s Bitcoin holdings and its software business.
Read Next:
Image: Shutterstock
Market News and Data brought to you by Benzinga APIs
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
