#USJoblessClaimsDrop #BinanceAlphaAlert #MicroStrategyAcquiresBTC
Critics call the move ill-conceived, while supporters call it brilliant. In any case, Michael Saylor continues to focus on Bitcoin.
MicroStrategy, an aggressive strategy to acquire Bitcoin, which observers say is either a stroke of far-sighted genius or a reckless gamble.
Those in the latter camp warn that MicroStrategy’s heavy reliance on volatile assets like bitcoin is risky. A significant drop in the price of bitcoin could strain the company’s balance sheet and increase financial pressures, potentially undermining its ability to meet debt obligations or raise additional funds.
Despite the risks, Sailor remains steadfast. The American businessman says he has "no reason to sell the winner."
MicroStrategy is the largest Bitcoin holding company in the world, with 447,470 Bitcoins in its possession as of publication. These massive holdings increase the risks facing the company and the entire Bitcoin ecosystem.
MicroStrategy's Bitcoin wallet growth is projected as of January 2024.
MicroStrategy BTC Purchase Funding
MicroStrategy is a business intelligence software company on paper, but its aggressive accumulation of bitcoin means it essentially operates as a bitcoin treasury company.
Sailor’s bitcoin buying spree began with a $250 million cash purchase from a company in August 2020. He then moved into debt issuance, starting with convertible bonds — debt that can be converted into equity. These bonds, which often carry low interest rates, helped raise $650 million in December 2020, with subsequent issuances reaching billions of dollars.
In June 2021, MicroStrategy issued $500 million in senior secured notes, offering higher interest rates and backed by the company’s assets.
Most recently, on December 24, 2024, MicroStrategy proposed increasing its common stock from 330 million shares to 10.33 billion shares, and its preferred stock from 5 million shares to 1.005 billion shares. The plan provides the flexibility to raise capital as needed over time rather than issuing all new shares at once.
This is in line with the company’s 21/21 plan, which aims to raise $42 billion over the next three years — half through equity sales and half through fixed income instruments — to fund more bitcoin purchases and explore initiatives such as developing a crypto bank or offering bitcoin-based financial products.
