Michael Saylor Teases Potential New Bitcoin Acquisition by MicroStrategy
Michael Saylor, co-founder of MicroStrategy, has hinted at the company’s next Bitcoin acquisition for eight consecutive weeks. On December 28, he posted a cryptic message on social media platform X regarding “disconcerting blue lines” on the SaylorTracker portfolio, which monitors MicroStrategy's Bitcoin transactions. This comment has led to speculation about another significant Bitcoin purchase.
MicroStrategy is known for its aggressive strategy, holding over 192,042 BTC at an estimated cost of $18 billion. This accumulation coincided with Bitcoin's price increase from around $67,000 to a record high of $108,000. MicroStrategy's stock has surged to approximately $360, reflecting a 400% increase this year. The company's focus has shifted from enterprise data analytics to Bitcoin investments, making it the largest public holder of the cryptocurrency.
Despite financial success, MicroStrategy's strategy faces criticism. Traders argue that Saylor's public announcements lead to market volatility. Following these announcements, day traders often short Bitcoin, anticipating a price drop after buying pressure decreases, which can negatively affect MicroStrategy’s stock value.
A trader remarked, “Saylor purchases are problematic; he announces them, and day traders short BTC knowing the big buyer is done, leading to Bitcoin retracing and $MSTR stock declining.”
Reports indicate that MicroStrategy may pause Bitcoin acquisitions during a scheduled blackout period in January. However, early indications suggest the company plans to maintain its Bitcoin-focused strategy.
MicroStrategy is preparing for significant corporate changes to facilitate further investments. The company has proposed increasing its authorized Class A common stock from 330 million shares to over 10 billion and expanding preferred stock from 5 million to 1 billion shares. If approved, this would allow MicroStrategy to issue more shares, potentially raising substantial funds for additional Bitcoin purchases.
Market analysts believe this expansion will provide MicroStrategy with greater flexibility for large-scale Bitcoin acquisitions without solely depending on existing financial resources. As speculation continues, both the cryptocurrency and stock markets are closely monitoring Saylor's next move.