tl;dr
Michael Saylor, co-founder of MicroStrategy, hinted at a potential large-scale Bitcoin acquisition through cryptic messages on social media. The company has already accumulated over 192,042 BTC at an estimated cost of $18 billion, resulting in significant stock price growth. However, this aggressive...
Michael Saylor, co-founder of MicroStrategy, hinted at a potential large-scale Bitcoin acquisition through cryptic messages on social media. The company has already accumulated over 192,042 BTC at an estimated cost of $18 billion, resulting in significant stock price growth. However, this aggressive Bitcoin-focused strategy has faced criticism for creating market volatility.
Despite reports of a blackout period in January, MicroStrategy is expected to continue its Bitcoin purchases, with plans to increase its authorized shares to allocate more funds for acquisitions.
Michael Saylor, co-founder of MicroStrategy, has reignited speculation about the company’s next big Bitcoin acquisition. On December 28, Saylor took to social media platform X to share cryptic insights about the SaylorTracker portfolio, which monitors MicroStrategy’s Bitcoin purchases.
A HINT OF MORE BITCOIN AHEAD? In his post, Saylor stated that the marker had “disconcerting blue lines,” which led to speculations that another large-scale buy may be imminent. Over recent weeks, similar hints from Saylor have preceded official announcements of major Bitcoin investments.
MicroStrategy has been on a Bitcoin buying spree, accumulating over 192,042 BTC at an estimated cost of $18 billion. During this time, Bitcoin’s price climbed from $67,000 to $108,000, while MicroStrategy’s stock price surged more than fivefold this year, now trading around $360 — up 400% on the year-to-date metrics.
MicroStrategy’s stock performance and inclusion in the Nasdaq-100 have been remarkable. The company’s shift from its core business of enterprise data analytics to a heavy focus on Bitcoin accumulation has positioned it as the largest public holder of the cryptocurrency.
However, this aggressive strategy has faced its share of criticism. Some market participants argue that Saylor’s announcements of Bitcoin buys create volatility. Critics claim that once the purchases are disclosed, day traders short Bitcoin, leading to a price retracement and a drop in MicroStrategy’s stock value.
Moreover, some have suggested that the purchase pattern was reportedly influenced by its plan for a blackout period in January, during which it will pause Bitcoin acquisitions. However, early indications suggest that Bitcoin buys will not be stopping anytime soon.
Instead, MicroStrategy prepares for its next steps, which include increasing its authorized shares of Class A common stock and preferred stock. The proposal seeks to expand Class A stock from 330 million to over 10 billion shares and preferred stock from 5 million to 1 billion.
Market observers believe this move will significantly increase its capacity to issue shares in the future, allowing it to allocate more funds for Bitcoin purchases.