KEY FACT: MicroStrategy, led by co-founder Michael Saylor, remains at the forefront of corporate Bitcoin investment, holding approximately 423,650 BTC valued at over $42 billion as of late 2024. Saylor's recent social media activity, historically linked to upcoming Bitcoin purchases, suggests the company may soon add to its holdings. Known for its bold acquisition strategy funded through equity, fixed-income securities, and leveraged debt, MicroStrategy's stock surged 400% in 2024, reflecting its significant market influence. The company also raised $2 billion through a preferred stock offering, emphasizing its commitment to expanding Bitcoin acquisitions despite risks tied to cryptocurrency volatility.

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MicroStrategy’s Bitcoin purchases. Source: SaylorTracker

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MicroStrategy Signals Monday Bitcoin Purchase

MicroStrategy, the business intelligence firm led by co-founder Michael Saylor, continues to make significant strides in its Bitcoin acquisition strategy. On January 5, Saylor posted a Bitcoin chart from the SaylorTracker website, a move that has historically preceded substantial Bitcoin purchases by the company. This pattern suggests that MicroStrategy may be preparing for another significant acquisition in the coming days.

As of December 8, 2024, MicroStrategy holds approximately 423,650 Bitcoins, valued at around $42.43 billion, making it the largest corporate holder of the cryptocurrency. The company's aggressive investment approach is encapsulated in its "21/21 plan," which aims to raise $42 billion over three years through equal parts equity and fixed-income securities to fund further Bitcoin acquisitions.

In a strategic move reflecting its growing prominence, MicroStrategy was added to the Nasdaq-100 index on December 23, 2024. This inclusion provides traditional stock investors with indirect exposure to Bitcoin through exchange-traded funds that track the index. Following this development, the company convened a special shareholders meeting to propose increasing its authorized shares of Class A common stock from 330 million to 10.3 billion and preferred stock from 5 million to over 1 billion. These measures are intended to facilitate the financing of additional Bitcoin purchases as part of its corporate treasury strategy.

On January 4, 2025, MicroStrategy announced plans to raise $2 billion through a perpetual preferred stock offering. This offering, separate from the core 21/21 plan, is expected to occur in the first quarter of 2025, pending company approval. The perpetual preferred stock will hold seniority over Class A common stock in bankruptcy scenarios and will take precedence during financial distributions in a corporate liquidation.

MicroStrategy's stock has experienced a remarkable surge, rising approximately 400% in 2024, significantly outpacing Bitcoin's own impressive gains. This growth is largely attributed to the company's leveraged investment strategy, which includes issuing equity and zero-coupon debt to finance Bitcoin purchases. As of December 2024, MicroStrategy holds 444,262 Bitcoins, reflecting its commitment to this investment approach.

However, this aggressive strategy is not without risks. The company's heavy reliance on leverage to acquire Bitcoin has drawn skepticism, especially considering the volatility of the cryptocurrency market. During the 2022 crypto-market downturn, MicroStrategy sustained significant losses when Bitcoin prices plummeted. Despite these challenges, the company remains steadfast in its approach, with Saylor expressing strong confidence in Bitcoin's long-term value.

MicroStrategy's ongoing Bitcoin acquisition strategy continues to captivate both supporters and critics. As the company prepares for potential new purchases, the financial world watches closely to see how this bold approach will influence the crypto markets which has experienced a bullish outlook in the last 24 hours.

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