MicroStrategy (MSTR) Stock Price closed 8.9 percent higher after a volatile session. MSTR opened at $245 and touched an intraday high at $263 before closing at $260.59. The stock was down by half percent during afterhours trading. MSTR touched a low of $231 during today's session. The stock has declined 18.5 percent during the last one month (even after considering today's recovery). The stock is also facing volatility as Michael Saylor is planning to raise more funds to buy Bitcoin.

Bitcoin, Ethereum and other cryptocurrencies recovered after a highly volatile session. During the early trades on March 11, Bitcoin and Ethereum touched lows. BTC price was highly volatile and a quick change of $1,000 on either side was witnessed many times.

Michael Saylor’s Strategy: A Bold $21 Billion Capital Raise to Fuel Bitcoin Acquisition

Michael Saylor, the visionary co-founder and chairman of Strategy (formerly MicroStrategy), is doubling down on Bitcoin, unveiling an ambitious plan to raise up to $21 billion through a preferred stock offering. Saylor has been criticized for betting everything on Bitcoin but he has managed wonderful gains on his long term holdings of the cryptocurrency. This strategic move aims to bolster the company’s already staggering Bitcoin reserves, which currently stand at 499,096 BTC, valued at approximately $42 billion. By leveraging capital markets, Saylor is positioning Strategy to dominate the corporate Bitcoin investment landscape while reshaping traditional financial strategies.

Raising Capital: The Preferred Stock Offering

Strategy’s latest fundraising effort revolves around the issuance of 8% Series A Perpetual-Strike Preferred Shares—a hybrid security that combines the features of both stocks and bonds. These preferred shares will be sold through an "at-the-market" offering, a flexible approach that allows the company to time and price sales optimally based on market conditions.

The issuance of these securities provides Strategy with an alternative financing mechanism that minimizes immediate dilution of common shareholders while securing stable capital inflows. This structure is particularly attractive to institutional investors seeking fixed dividends with potential equity upside.

Building on Prior Success: The January Capital Raise

This latest capital raise is a continuation of Strategy’s successful fundraising campaign earlier this year. In January, the company secured $563 million by issuing preferred shares priced at $80 each, a figure notably lower than the prevailing market price. The discount structure helped generate strong investor interest, driving significant demand for the offering.

Preferred shares serve as a vital tool for companies looking to raise capital without immediate dilution of common equity. Investors benefit from fixed dividends while maintaining the option to convert shares into common stock under specific conditions.

Bitcoin Accumulation: A Long-Term Vision

Since October, Strategy has aggressively expanded its Bitcoin holdings, leveraging various capital-raising mechanisms to acquire more BTC. The current plan is part of a broader strategy to secure $42 billion over the coming years through a mix of fixed-income securities and equity sales.

Strategy’s unrelenting Bitcoin accumulation sets it apart as one of the most committed corporate adopters of digital assets. Saylor’s belief in Bitcoin as a superior store of value continues to drive his capital allocation decisions, reinforcing the company’s role as a major institutional player in the cryptocurrency market.