MicroStrategy Inc. has deepened its commitment to Bitcoin by acquiring an additional $1.1 billion worth of the cryptocurrency, bringing its total holdings to approximately 471,107 Bitcoins. To fund these purchases, the company has issued equity and debt, including a recent issuance of 2.76 million shares. Shareholder approval has also been secured to increase authorized Class A common shares to 10.3 billion and preferred shares to 1 billion. The company has announced the offering of 2.5 million shares of Series A Perpetual Strike Preferred Stock as part of its aggressive acquisition strategy.

In a move to diversify funding, MicroStrategy plans to offer $250 million worth of convertible preferred securities with an 8% yield. These securities, priced at $100 per share and listed under the ticker STRK, are expected to appeal to retail investors seeking lower volatility compared to the company's existing convertible debt. The offering, managed by Barclays and Moelis, will be available after Thursday’s trading close.

Despite its bold strategies, MicroStrategy's stock has recently faced challenges, with a 12.3% decline over a five-day losing streak, though it saw a slight recovery. As of January 28, 2025, the stock is trading at $340.11, down 2.25% from the previous close. Bitcoin's price volatility, now trading at $101,836, continues to heavily influence the stock's performance, as the company's fortunes remain tied to its significant cryptocurrency holdings. Additionally, MicroStrategy may face federal income taxes on its $18 billion of unrealized gains due to recent regulatory changes, which could impact its long-term strategy.