As a seasoned researcher with a knack for following trends in technology and finance, I find MicroStrategy’s Bitcoin acquisition strategy under Michael Saylor’s leadership fascinating. With my background in understanding market dynamics and corporate strategies, it is clear that Saylor is not only a visionary but also a risk-taker who sees the potential in Bitcoin as a long-term investment.
Michael Saylor’s firm, MicroStrategy, intends to fund its ongoing Bitcoin purchasing approach by issuing new shares and securing additional funds via capital increases.
MicroStrategy announced its intention to invest a total of $42 billion in Bitcoin (BTC) by the year 2027, as disclosed by the company’s CEO, Phong Le, during an earnings call on October 30th. To fund this massive purchase, the firm plans to issue additional securities and boost its endeavors in the Bitcoin capital markets.
Le labeled the plan as “21/21,” since MicroStrategy intends to secure $21 billion through bond sales and another $21 billion via stock offerings.
The increase in Bitcoin prices has strengthened MicroStrategy and its MSTR shares, enabling the company to invest further in buying additional Bitcoins. As the biggest corporate Bitcoin owner, MicroStrategy holds more than $18 billion worth of Bitcoin in its assets.
Thank You, Satoshi.
— Michael Saylor⚡️ (@saylor) October 31, 2024
During the earnings discussion, Saylor detailed an extended plan for acquiring more Bitcoin, with a focus on advocating for its use as a reserve asset in treasuries.
Let’s work towards encouraging the worldwide use of Bitcoin as a reserve asset for treasuries. We should advocate for its adoption among various entities such as nations, municipalities, regions, and businesses – whether they are publicly or privately owned.
Michael Saylor, MicroStrategy founder
The advocate for Bitcoin (BTC) is not the only one endorsing the idea of a cryptocurrency reserve; even presidential candidate Donald Trump has expressed his intention to transform the U.S.’s approximately $12 billion in Bitcoin holdings into a national strategic reserve.
This week, the worth of Bitcoin holdings by MicroStrategy and Saylor grew due to Bitcoin hitting record highs. The cryptocurrency reached over $73,000 before a 4% market adjustment caused a dip in gains, with trading happening near $70,000 at the moment this text was written.
Through his unwavering belief in Bitcoin (referred to as “Bitcoin maximalism”), Saylor consistently follows a strategy of purchasing more. This has led some to wonder about his future intentions for these Bitcoins. Saylor himself has made it clear that he will never sell, and instead, he plans to pass on his Bitcoin holdings to society after his passing.
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2024-10-31 20:06