For the tenth week in a row, on January 12th, Michael Saylor, co-founder of MicroStrategy, shared his Bitcoin (BTC) tracker. This weekly chart has become a signal for an upcoming Bitcoin purchase and is usually posted by Mr. Saylor on Sundays, a routine often associated with him.
As per SaylorTracker, it is reported that MicroStrategy (MSTR) presently owns around 447,470 Bitcoins, with a total estimated value of approximately $42.4 billion. This substantial Bitcoin holding is the result of their latest purchase on January 6th, where they acquired an additional 1,070 BTC.
The stocks of MSTR have dropped approximately 40% since they peaked at about $543 per share on November 21, which mirrors a broader decline in the cryptocurrency market.
The strategy by MicroStrategy for accumulating Bitcoin has sparked discussions within the cryptocurrency world. Some view MicroStrategy as an amplified Bitcoin investment, while others express doubts about the long-term viability of Saylor’s debt-financed methodology.
Saylor’s strategy draws concern
David Krause, formerly a finance professor at Marquette University, has cautioned that a swift and steep decline in the value of Bitcoin might lead to a dramatic fall in the share prices of MicroStrategy.
In simpler terms, the professor explained to CryptoMoon that a rapid drop in Bitcoin’s price, given its high volatility, might lead to a decrease in MicroStrategy’s shareholder assets, with the worst-case outcome being the company’s liquidation due to bankruptcy.
Full steam ahead on MicroStrategy’s Bitcoin plan
As a fervent believer in the potential of Bitcoin, I’ve chosen to deepen my commitment to this digital currency, mirroring Michael Saylor’s strategic approach for corporate treasuries. In fact, I’ve been actively advocating for its adoption, even addressing tech giants like Microsoft about its merits and long-term benefits.
In October 2024, a MicroStrategy executive disclosed their “21/21 strategy” for procuring additional Bitcoin using approximately $42 billion, obtained from selling $21 billion in company shares (equity offerings) and issuing $21 billion in bonds (fixed-income securities).
In a statement made on January 3rd, MicroStrategy declared its intentions for a possible offering of $2 billion worth of preferred stocks, contingent upon market circumstances during the first quarter of 2025.
The money raised could be allocated towards buying additional Bitcoins, thereby reinforcing our financial structure, alongside our primary strategy of investing $42 billion in Bitcoin as part of our corporate treasury’s 21/21 plan.
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2025-01-13 00:45