MicroStrategy Wants to Issue More Shares to Fuel Bitcoin Purchases

As a seasoned researcher who has closely followed the digital asset landscape for several years now, I find MicroStrategy’s unrelenting Bitcoin acquisition strategy fascinating and bold. Having witnessed the ups and downs of cryptocurrencies, I must admit that their approach is not without risk, but it demonstrates a level of conviction in Bitcoin’s long-term potential that is hard to ignore.

MicroStrategy has arranged for a specific gathering of shareholders, aimed at endorsing modifications to their stock issuance approach, which will be utilized to finance further purchases of Bitcoin.

The firm has already completed three rounds of BTC purchases in December. 

MicroStrategy’s Non-Stop Bitcoin Purchase Strategy

As an analyst, I recently discovered a proxy filing from December 23rd with the Securities and Exchange Commission (SEC). This document outlines the company’s intention to expand the authorized number of shares for both Class A common stock and preferred stock. The purpose behind this action is to enhance our ability to issue shares flexibly in the future.

Essentially, the company is seeking permission to greatly boost the total number of share options they can offer. This would increase the maximum amount of Class A common stock from 330 million to a staggering 10.33 billion shares, and the preferred stock from 5 million to more than a billion.

The proposed changes align with MicroStrategy’s 21/21 Plan, first disclosed in October. The plan outlines a three-year goal to acquire $42 billion worth of BTC. 

The Bitcoin acquisitions will be financed by selling $21 billion worth of stocks, as well as raising an additional $21 billion through the issuance of fixed-income securities.

In a recent post, Michael Saylor stated that if you’re not investing in Bitcoin when it’s high, you could be missing out on potential profits.

In the year 2024, MicroStrategy significantly increased its Bitcoin holdings, purchasing a total of 42,162 Bitcoins during December. This massive purchase is currently worth more than $4 billion, based on today’s market values.

By October, the company had reported a Bitcoin return of approximately 17.8%, aiming for an annual yield ranging from 6% to 10% between 2025 and 2027. So far, it has successfully garnered $13 billion through stock sales and an additional $3 billion via convertible bond offerings.

Instead, it’s said that the company is contemplating a brief hiatus on buying activities during January.

In summary, Bitcoin’s impressive growth throughout 2024 has significantly boosted MicroStrategy’s shares. As of now, MSTR has seen a staggering increase of more than 420% this fiscal year. This price surge paved the way for its addition to the Nasdaq-100 index, with speculations pointing towards possible inclusion in the S&P 500 next year.

“Last week, $MSTR treasury operations resulted in a BTC Yield of .72%, a net benefit of ~3,177 BTC. At $94K per BTC, that equates to a $299 million gift to our shareholders,” Saylor posted on X (formerly Twitter). 

Companies like Marathon Digital Holdings and Riot Blockchain are not only buying Bitcoin but doing so with greater intensity. However, MicroStrategy still leads as the corporation with the most Bitcoin, largely due to Michael Saylor’s proactive strategy of amassing it.

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2024-12-25 01:49