MicroStrategy is playing the pedal-to-metal game, and this time it’s all about expanding its share count to fund even more Bitcoin acquisitions.
The company plans to up its authorized Class A common stock from 330 million shares to 0.3 billion shares.
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Michael Saylor’s Bitcoin obsession is limitless?
Michael Saylor, the co-founder of MicroStrategy controls about 47% of the voting power, and with this kind of influence, it’s likely that shareholders will give the green light for this stock increase.
If approved, MicroStrategy could soon rival the likes of Amazon and Alphabet in terms of share volume.
The company has been on a literal Bitcoin buying spree for years, announcing back in October that it want to raise $42 billion over three years through debt sales and share offerings.
Since then, they’ve been on fire, making ten consecutive weekly purchases and nearly doubling their Bitcoin stash to over $44 billion.
Investors’ mixed feelings
Many warn that increasing shares would ruffle some feathers among investors due to concerns about diluted voting rights and earnings per share, but there’s a catch.
MicroStrategy’s stock has skyrocketed by over 2,500% since they started their Bitcoin buying strategy. So, investors might just be willing to overlook those worries for now.
The company uses a unique metric called bitcoin yield, which tracks how much Bitcoin each diluted share holds over time, without getting too caught up in the ups and downs of Bitcoin’s price. This helps them show shareholders the value of their Bitcoin acquisitions.
No slowing down
If this proposal passes, and pretty likely it will, MicroStrategy will have a lot more flexibility in funding its Bitcoin ambitions.
They’ve already raised $21 billion through previous share issuances and still have about $6.5 billion left under their current plan.
Not so long ago, MicroStrategy made headlines again by acquiring 2,530 BTC for around $243 million, bringing their total holdings to approximately 450,000 BTC.
This purchase was funded by selling off some of its Class A shares.
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