MicroStrategy shareholders approve raising $42 billion by issuing additional shares
The funds will be used to increase investment in bitcoin
22.01.2025 - 12:25
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What’s new? Shareholders of analytics software developer MicroStrategy have approved an increase in Class A common stock and preferred stock, which will raise additional funds to increase bitcoin investments.
What else is known? In October 2024, the company developed a plan called 21/21, which involves offering securities of both categories for $21 billion to strengthen the bitcoin reserve. In this way, the company intends to raise $42 billion for bitcoin purchases over the next three years.
As a result, MicroStrategy will surpass four of the five largest companies in the Nasdaq 100 index, Nvidia, Apple, Alphabet and Amazon, in terms of shares outstanding.
MicroStrategy began buying bitcoin in late 2020 to hedge inflation and has since become the largest holder of the asset among publicly traded companies. Its MSTR stock on the Nasdaq exchange has risen more than 1000% in value in that time and is trading at $389,1 at the time of writing.
Earlier this week, MicroStrategy bought another 11 000 bitcoins worth $1,1 billion, giving it a 1,96% yield on its BTC holdings since the beginning of the year. In total, the company owns 461 000 BTC with a purchase price of $29,3 billion. Given the current exchange rate, the unrealized profit is $19,1 billion.
Michael Saylor suggests that the US should create a bitcoin reserve to earn $81 trillion
He presented a paper recommending a comprehensive regulatory framework for cryptocurrencies
Also, this week, it was reported that MicroStrategy founder and head of the board of directors Michael Saylor and the management of the largest mining company Marathon met with Donald Trump’s administration. The media suggest that the meeting discussed the creation of a national bitcoin reserve and the increase in mining capacity.
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