MicroStrategy intends to acquire $42 billion in Bitcoin in order to expand its market share

In order to finance its $42 billion Bitcoin acquisition strategy, MicroStrategy intends to issue additional shares. The company intends to raise $21 billion through equity and $21 billion through debt financing.

MicroStrategy is positioning itself to increase Bitcoin purchases by issuing additional shares. It is the company’s objective to acquire $42 billion in Bitcoin by utilizing a combination of equity and debt financing. This action coincides with the remarkable performance of Bitcoin, which has increased by nearly 420% in 2024, and MicroStrategy’s stock, $MSTR. There are plans for a special shareholder meeting to ratify modifications to the firm’s equity issuance policy in order to facilitate its ambitious acquisition strategies.

On December 23, MicroStrategy proposed to expand its authorized Class A common stock from 330 million to 10.33 billion shares and preferred ownership from 5 million to more than 1 billion shares in a recent SEC filing. This considerable expansion will provide the company with increased flexibility to issue shares in order to meet future funding requirements. These modifications are consistent with MicroStrategy’s 21/21 Plan, which was disclosed in October. The plan’s objective is to acquire $42 billion in Bitcoin over a three-year period, with $21 billion of the funding coming from equity sales and an additional $21 billion from fixed-income securities.

MicroStrategy acquired 42,162 Bitcoin (BTC) and valued them at over $4 billion at current prices in December alone. This is the organization’s most aggressive acquisition phase, as it is of the opinion that acquiring Bitcoin at its apex price will optimize prospective returns. On X (formerly Twitter), Michael Saylor declared, “If you are not purchasing Bitcoin at the peak, you are squandering money.”

The company’s Bitcoin yield was 17.8% as of October, and it is aiming for an annual yield of 6% to 10% from 2025 to 2027. To date, MicroStrategy has raised $13 billion through stock sales and $3 billion through convertible bonds. Nevertheless, a scheduled suspension period predicts a temporary halt in Bitcoin purchases in January.

Throughout 2024, the value of Bitcoin experienced a substantial increase, which resulted in MicroStrategy’s incorporation in the Nasdaq-100. The corporation is also a prospective candidate for the S&P 500 in the upcoming year. Michael Saylor emphasized the significance of their treasury operations, which resulted in a Bitcoin yield equivalent to 3,177 BTC in a single week. This generated a net benefit of $299 million for shareholders at a rate of $94,000 per BTC.

Standing out for its unrelenting accumulation strategy under Saylor’s stewardship, MicroStrategy remains the largest corporate Bitcoin holder. MicroStrategy remains the leader in Bitcoin purchases, despite the fact that Marathon Digital Holdings and Riot Platforms have also accelerated their purchases. The company’s aggressive strategy is indicative of its dedication to leveraging the optimistic trajectory of Bitcoin.

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