MicroStrategy Doubles Down on Bitcoin Acquisitions, Faces Scrutiny from Investors

The business intelligence firm, known for its significant investment in Bitcoin, is set to increase its authorized common stock, potentially altering its share structure as shareholders vote on this measure.

Business intelligence firm MicroStrategy (NASDAQ:MSTR) is seeking to increase its authorized common stock, a move that will be put to a shareholder vote at the company’s upcoming annual meeting.

The company, which is known for its substantial investment in Bitcoin (CRYPTO: BTC), currently has 500 million shares of common stock authorized, and is seeking to increase this number to 700 million.

Investors and analysts have been closely scrutinizing MicroStrategy’s aggressive Bitcoin acquisition strategy, with some expressing concerns that the company may be overleveraging itself in the process.

MicroStrategy stock has soared this year, thanks in large part to the rising price of Bitcoin. The company’s shares have quintuped in value so far in 2024.

As of December 22, MicroStrategy had purchased 42,162 bitcoins for $4.16 billion recently, bringing its total holdings to 444,262 at an average purchase price of $62,257 per bitcoin.

The company’s bitcoin holdings are now valued at roughly $43.4 billion, making MicroStrategy the largest corporate holder of the cryptocurrency.

MicroStrategy is also planning to fully integrate the Lightning Network into its bitcoin strategy by the end of 2024, according to Michael Saylor.

The company, which has already begun offering bitcoin rewards to its employees, is looking to expand its crypto offerings further in the coming year.

Saylor, who is also a bitcoin maximalist, has stated that he ultimately wants to acquire $3 trillion of bitcoin for MicroStrategy.

The company’s bitcoin strategy has drawn skepticism from some quarters, including angel investor Jason Calacanis, who has warned that MicroStrategy could “destroy the bitcoin market.”

Calacニス is concerned that Saylor’s efforts to consolidate massive amounts of bitcoin could make the asset less attractive to new investors.

However, analysts at Bernstein are bullish on MicroStrategy stock, recently doubling their price target to $600.

The firm is projecting continued growth for MicroStrategy, backed by solid demand in a favorable regulatory climate.