MicroStrategy Boosts Bitcoin Holdings
MicroStrategy Expands Bitcoin Treasury
MicroStrategy, a business intelligence company, significantly increased its authorized shares to fund its ongoing Bitcoin buying strategy. Shareholders approved a substantial increase in authorized Class A common shares, from 330 million to 10.3 billion. This move, approved with 56% of the vote, allows MicroStrategy to potentially surpass all but the top four Nasdaq 100 companies in outstanding shares.
The company also expanded its authorized preferred stock from 5 million to 1 billion shares. These amendments become effective upon filing with Delaware's secretary of state.
Funding the Bitcoin Acquisition
MicroStrategy aims to raise $42 billion by 2027 through equity and convertible note offerings to further bolster its Bitcoin holdings. As of January 20, $5.4 billion worth of shares remained available for sale under the company's "21/21 plan."
The company recently announced the purchase of 11,000 BTC for $1.1 billion, at an average price of $101,191 per Bitcoin. This brings their total Bitcoin holdings to 461,000 BTC, valued at over $48 billion—representing more than 2% of Bitcoin's total supply.
Market Impact and Future Outlook
Following the announcement, MicroStrategy shares saw a 1.8% dip, while Bitcoin experienced a 1% increase, trading at $105,200. This highlights the ongoing market volatility and the close relationship between MicroStrategy's actions and Bitcoin's price.
Michael Saylor's attendance at the Crypto Ball in Washington, D.C., before President Trump's inauguration, underscores the company's engagement with key political figures and its anticipation of a potentially more crypto-friendly regulatory environment.
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