- MicroStrategy plans $42B raise through equity, securities for Bitcoin.
- Michael Saylor’s firm now holds 444,262 BTC, valued at roughly $41.4 billion.
- MicroStrategy’s stock up 400% YTD, trading at $360 on Nasdaq-100.
MicroStrategy’s founder, Michael Saylor, sparked fresh speculation about the company’s next Bitcoin purchase. On December 28, Saylor posted on X, referencing the SaylorTracker website, which monitors MicroStrategy’s Bitcoin transactions. The post, which mentioned “disconcerting blue lines,” fueled anticipation among market participants about an imminent purchase.
MicroStrategy already purchased 444,262 BTC at a cost of around $41.4 billion. Its most recent purchase was on December 22, 2024, adding 5,200 BTC at an average price of $106,000. While this was the smallest acquisition since July, the company’s intent to continue its buying spree remains evident. Saylor’s regular updates on potential acquisitions have become a focal point for the Bitcoin community, often aligning with significant market moves.
MicroStrategy’s Bold 21/21 Plan and Shareholder Strategy
MicroStrategy recently stated its 21/21 strategy, which includes acquiring $42 billion in the next three years by Buying Equities and corporate bonds. This plan emphasizes the firm’s ambitious plan on its bitcoin strategy, which the firm has transformed from being an enterprise analytics to cryptocurrency investments.
In December, the company conducted a special shareholders meeting to increase the total shares of the company; from 330 million Class A common stock to over 10 billion and preferred stocks from 5 million to 1 billion. This would allow MicroStrategy enormous freedom to issue more shares and maintain additional capital to invest again in Bitcoin. According to the analysts, this approach may help the firm to enhance its ability to achieve sustainable business development despite potential short-term market volatility.
Market Reaction and Bitcoin Price Volatility
MicroStrategy’s high BTC buying has placed it at the top of the list of largest public holder of the cryptocurrency. Nevertheless, such movements have elicited a lot of criticism. Market participants note that Saylor’s public announcements of Bitcoin acquisitions often lead to increased volatility. Day traders sometimes short Bitcoin following these announcements, causing temporary price retracements and impacting MicroStrategy’s stock performance.
Nevertheless, MicroStrategy has grown its stock by over 400 % year to date, trading at $360 and getting listed in Nasdaq-100. While some of these strategies are quite questionable, they demonstrate the company’s strong focus on Bitcoin as the key activity driver.
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