MicroStrategy Incorporated (NASDAQ: MSTR) shares plunged 17% on Monday following the announcement of a $21 billion at-the-market offering program. The business intelligence firm revealed plans to issue and sell Series A preferred stock, a move aimed at raising funds to bolster its Bitcoin holdings, among other corporate purposes.
Before the market opened on Monday, MicroStrategy disclosed it had entered into a sales agreement to offer up to $21 billion worth of its 8% Series A perpetual strike preferred stock. The company stated that these shares, which can be converted into its class A common stock, will be sold gradually over an extended period. The proceeds from this program are earmarked for general corporate needs, with a specific emphasis on acquiring additional Bitcoin.
The company clarified that no shares of its Class A common stock were sold, nor was any Bitcoin purchased, between March 3 and March 9 under this program. As of March 9, MicroStrategy and its subsidiaries held approximately 499,096 Bitcoin, acquired at a total cost of $33.1 billion—or roughly $66,357 per Bitcoin.
MicroStrategy (NASDAQ: MSTR) shares may also be under selling pressure on Monday due to a drop in Bitcoin price. The cryptocurrency declined approximately 5.12% over the past 24 hours, trading near $78,836 at the time of this report. According to CMC, Bitcoin has fallen about 8.5% over the past week.
