MicroStrategy Expands Share Issuance to Fuel Its Bitcoin Buying Spree
by aria-crypto.com
January 18, 2025 at 04:52
MicroStrategy Expands Share Issuance to Fuel Its Bitcoin Buying Spree
MicroStrategy is set to dramatically expand its share structure by proposing an increase in authorized Class A shares from 330 million to 10.3 billion, in a strategic move to bolster its Bitcoin acquisition fund. This significant boost in shares will place MicroStrategy's outstanding shares on par with giants like Amazon and Alphabet. Michael Saylor, founder with approximately 47% of the voting power, supports this aggressive expansion, aimed to finance over $42 billion for Bitcoin purchases over the next three years. Despite potential concerns of dilution from such an increase, MicroStrategy's approach includes using a unique bitcoin yield metric to value acquisitions, which might reassure investors. This method assesses Bitcoin holdings per share over time, discounting price fluctuations to focus on acquisition value. The company's strategy has already yielded impressive results with a 2,500% return since the initiation of its Bitcoin investment strategy, influencing shareholders' favor despite the dilutive effects of increasing shares. The vote on this proposal is scheduled for January 21, with significant backing likely given Saylor's influential voting control.
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