MSTR, the big whale of Bitcoin, announced a notice of an extraordinary shareholders' meeting. I was very "shocked" after reading it! ! !
MicroStrategy (MSTR)'s recent actions are a bit confusing. They plan to significantly increase the number of stock authorizations, with Class A common shares increasing to 1.033 billion shares and preferred shares increasing to 100.5 million shares. This is not a small number, and the dilution ratio is quite amazing.
The main business of this company, in simple terms, is to buy Bitcoin. They have "burned money" to buy a lot of Bitcoin before, as fast as riding a rocket. Now it seems that the fuel of this rocket is running out. This additional issuance of shares is obviously to raise more funds to continue buying Bitcoin.
This operation reminds me of the old saying: "Good steel is used on the blade." But is this blade a bit too sharp? After all, the price fluctuations of Bitcoin are notoriously "exciting". MSTR's move is extremely risky.
Before March, they had spent all the debt issuance for three years. Now this move seems to be a desperate move. The tight capital chain is no joke. If the capital gap is not filled in January, the consequences will be disastrous.
This additional issuance is like walking a tightrope on the edge of a cliff. Whether it can be successfully passed depends on the subsequent market conditions and MSTR's luck. This game is big enough.