On January 5th, MicroStrategy’s co-founder Michael Saylor shared a Bitcoin (BTC) graph from the SaylorTracker site; this is a routine practice of his – he usually shares such charts every Sunday, followed by Bitcoin purchases on the next day.
The tech founder subtly indicated to their followers via X that there seems to be an issue with SaylorTracker.com, possibly suggesting a potential Bitcoin purchase coming up on Monday.
Last Friday, December 30th, MicroStrategy bought 2,138 Bitcoins, with each coin costing them approximately $97,837, a week after Saylor had initially shared the same chart on Sunday, December 29th.
The business aims to make additional acquisitions, according to their 21/21 strategy, which involves raising funds for a projected $42 billion Bitcoin purchase. This will be accomplished by selling $21 billion worth of shares (equity) and issuing $21 billion in bonds (fixed-income securities).
MicroStrategy boosts 21/21 Bitcoin treasury plan
On December 23, 2024, MicroStrategy joined the Nasdaq 100 index, a collection of the top 100 companies listed on the Nasdaq stock exchange in terms of market value.
Adding Bitcoin to MicroStrategy’s index provides traditional stock investors, who own the instrument via exchange-traded funds, with an indirect way of investing in Bitcoin.
After joining the Nasdaq 100 index, MicroStrategy convened a special shareholder gathering with the aim of raising more shares, which would be used to fund the acquisition of Bitcoins as part of their strategic approach for managing corporate reserves.
As per a December 23rd report submitted to the Securities and Exchange Commission (SEC), MicroStrategy is seeking shareholder approval to expand their Class A common stock by over 30 times, from the current 330 million shares to a potential 10.3 billion shares.
As an analyst, I’m reporting that the company has requested its shareholders to expand the authorized number of shares for their preferred stock from a previous limit of 5 million, all the way up to over 1 billion shares.
On January 4th, MicroStrategy disclosed its intention to secure a $2 billion investment by issuing perpetual preferred stocks.
In the event of bankruptcy or corporate liquidation, my analysis indicates that the Perpetual Preferred Offering holds a superior claim compared to Class A Common Stock. This means it will be paid off before any distributions are made to equity holders.
The suggested salary increase isn’t linked to our primary plan for purchasing Bitcoin, but rather it’s an independent move. This increase might take place during the first quarter of 2024, assuming that the company approves it.
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2025-01-05 20:12