Bitcoin: MicroStrategy Calls Its Shareholders For A Crucial Vote

MicroStrategy, one of the pioneers of institutional investment in Bitcoin, pushes the boundaries once again with a spectacular initiative: raising $42 billion to strengthen its position in the crypto market. This bold plan, dubbed 21/21, marks a decisive step in its long-term strategy. While some see it as a visionary bet, others highlight the colossal risks associated with such ambition.

A bold strategy to dominate the crypto scene

MicroStrategy, a name now inseparable from the Bitcoin universe, continues to amaze with its boldness and long-term vision. The company, led by the tireless Michael Saylor, has just submitted a monumental proposal: raising $42 billion to acquire even more Bitcoin.

A staggering figure that raises as much admiration as skepticism. But what lies behind this colossal initiative? And above all, why is MicroStrategy betting so heavily on the queen of crypto?

Since 2020, the company has positioned itself as a fervent advocate of Bitcoin, seeing it as much more than just a speculative asset.

For it, Bitcoin is a store of value, an alternative to the traditional financial system often deemed unstable.

With its 21/21 plan, the objective is clear: to leverage all possible financial levers to maximize its holdings of BTC, thus consolidating its role as a pioneer in the institutional adoption of cryptocurrencies.

A 21/21 plan as ambitious as it is risky

The 21/21 plan is a calculated bet, but not without risks. MicroStrategy intends to raise $21 billion through stock sales and another $21 billion through fixed-income securities.

This dual strategy will support massive Bitcoin acquisitions over three years, further consolidating the company’s image as the largest institutional holder of BTC.

In its filing with the SEC, the company requests a significant increase in the number of authorized shares, reaching astronomical figures: 10.33 billion shares for Class A common stock and over one billion for preferred shares.

This increased flexibility is essential to meet the financial requirements imposed by the plan. However, some critics believe that this potential dilution of shares could alarm traditional investors, who are not used to such atypical strategies.

Despite these concerns, MicroStrategy seems determined to move forward. In December 2024, the company acquired more than 42,000 BTC, a transaction valued at over $4 billion.

This buying frenzy reflects Michael Saylor’s anticipation of a potential exponential rise in Bitcoin prices, bolstered by a macroeconomic environment favorable to decentralized assets.

Bitcoin, the engine of a financial revolution

Beyond the figures, MicroStrategy’s strategy symbolizes an ideological shift. By adopting a resolutely Bitcoin-oriented approach, the company positions itself as a key player in the transition to a digital economy.

With a total holding of 444,262 BTC, equivalent to $43.5 billion, it far exceeds its competitors and redefines the rules of institutional investment.

However, this strategy does not come without bumps. The volatility of Bitcoin, although mitigated by increasing adoption, remains a major risk factor.

Moreover, MicroStrategy’s massive exposure to a single asset could pose problems in the event of a market downturn. But for Michael Saylor, the stakes are worth it. The entrepreneur sees Bitcoin as a universal store of value and a bulwark against rampant inflation.

While other companies are still hesitant, MicroStrategy continues to chart its course with unwavering conviction. If the bet succeeds, it could serve as a model for other organizations looking to capitalize on the crypto revolution. But if the tide turns, it could be a stark warning about the dangers of a strategy that is too concentrated. Meanwhile, North Korean hackers cause massive withdrawals at Hyperliquid.