MicroStrategy's announcement of a potential capital raise through the issuance of up to $2 billion in perpetual preferred stock has captured investor attention. This strategic move is part of the company's ambitious 21/21 Plan, which aims to significantly enhance its financial flexibility and support further bitcoin acquisitions. The preferred stock offering, which will be senior to the company's class A common stock, is expected to include features such as convertibility and cash dividends. While the final terms and timing of the offering are yet to be determined, the market has reacted positively to the news, reflecting confidence in MicroStrategy's growth strategy and its commitment to strengthening its balance sheet.
The Defiance Daily Target 1.75x Long MSTR ETF (MSTX) surged 26.11% to $47.58 at 5:00 PM on Friday, January 3.