MicroStrategy, led by Bitcoin advocate Michael Saylor, remains committed to expanding its Bitcoin reserves. However, Trump’s Bitcoin Reserve plan could pose future competition.
The company’s executive chairman and co-founder, Michael Saylor, has been a fervent advocate for Bitcoin. He has made it a key component of MicroStrategy’s strategy since he views it as a significant long-term asset.
MicroStrategy is still committed to growing its Bitcoin holdings in spite of market fluctuations. The timing is ideal since Microstrategy may face fierce competition in the future due to Trump’s strong push for the Bitcoin Reserve proposal.
MicroStrategy’s “21/21 Strategy”
This plan is a component of MicroStrategy’s ambitious “21/21 Plan,” which aims to raise $21 billion over three years through stocks and an additional $21 billion through loans and other financial instruments.
The corporation has already purchased 194,180 Bitcoin since launching this plan in October 2024, which puts it about halfway to its target. At the moment, these Bitcoins are valued at $19 billion.
The Company has 446,400 Bitcoin as of January 3, 2025, which is worth roughly $43.7 billion. The corporation has made $16 billion in unrealized gains from this enormous position. Remarkably, MicroStrategy’s stock, MSTR, was recently included in the Nasdaq index and outperformed Bitcoin in 2024.
Depending on market conditions, the fresh $2 billion stock offering is anticipated to take place in early 2025. MicroStrategy is also seeking shareholder approval to increase the amount of shares it is able to issue.
Its preferred stock ceiling was raised from 5 million to 1 billion, while its common stock maximum was raised from 330 million to 10.3 billion. These amendments will be discussed at a meeting of shareholders.
Obtaining Funds to Purchase Bitcoin
MicroStrategy is reaffirming its faith in the potential of cryptocurrencies by increasing its fundraising efforts and purchasing further Bitcoin. MicroStrategy recently submitted a request to the SEC to obtain permission to issue billions of additional shares in order to support its Bitcoin purchasing strategy.
The plan seeks to raise the company’s preferred shares from 5 million to 1.005 billion and its Class A common shares from 330 million to 10.33 billion. The goal of this action is to raise the money required to finance additional Bitcoin purchases.
Trump has outlined an optimistic year for cryptocurrencies, and if he is successful in his 100 days in the White House, Bitcoin will see a significant uptick. Following Trump’s victory, Bitcoin hit $100,000, and despite some brief declines this year, many analysts predict that this trend will continue.
