MicroStrategy Stock Surges In Pre-Market As It Announces Plans To Raise $2 Billion: Retail Bullish
By Stocktwits Inc | First Published Jan 6, 2025, 7:35 PM ISTThis is a part of MicroStrategy’s 21/21 plan, wherein the Bitcoin proxy intends to raise $21 billion in equity and $21 billion through fixed income instruments.
Shares of MicroStrategy Inc. (MSTR) surged in pre-market trading on Monday after the Bitcoin (BTC) proxy announced that it is gearing up to raise $2 billion.
MicroStrategy stock price was up more than 4% at the time of writing ahead of Monday market open in another truncated week of trading.
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In a post on Friday, Jan. 3, MicroStrategy outlined a plan to raise $2 billion in fresh capital through a perpetual preferred stock offering. This is a part of the Michael Saylor-led company’s plans to raise $21 billion of equity and $21 billion through fixed income instruments.
While MicroStrategy has not yet revealed the price or the date of the offering, it said that it intends to use the proceeds of the issue to “strengthen its balance sheet and acquire more bitcoin.”
MicroStrategy has so far purchased 447,070 Bitcoin, valued at $44 billion, at an average price of $62,273. Based on the current Bitcoin price of $99,220, this presents an unrealized gain of 59.3%.
Of these, MicroStrategy acquired 1,070 Bitcoin on Monday, valued at $101 million.
Retail sentiment on Stocktwits was positive after news of MicroStrategy’s fundraising broke – the ‘bullish’ (62/100) score strengthened and message volume also saw an uptick compared to a day ago.
Users on Stocktwits expressed optimism about MicroStrategy stock price.
Another user echoed similarly bullish sentiments, adding that now is the “time to run” and not to sell MicroStrategy shares.
MicroStrategy stock price is up over 163% in the last six months and 468% in the last year.
Bitcoin, on the other hand, gained over 1.4% in the last 24 hours to hover around $99,220 at the time of writing. It is up 76% in the last six months, and over 125% in the last year.
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