MicroStrategy, Which Owns the Most Bitcoin in the World, Is Criticized for Trying to Expand Its Stock Issuance

On the 24th (local time), renowned Silicon Valley investor Jason Calacanis expressed on X (Twitter), "If one entity owns too much, the Bitcoin game will be over.

Silicon Valley investor Jason Calacanis has criticized MicroStrategy for its plan to drastically increase its number of issued shares, highlighting the potential risks associated with one entity holding a large proportion of the Bitcoin (BTC) supply.

On the 24th (local time), Calacanis expressed his concerns via X (Twitter), stating, "If a single entity owns too much, the Bitcoin game will be over. In my personal opinion, the maximum cap should be 10%."

"If MicroStrategy continues to purchase Bitcoin excessively, it might feel like Bitcoin investors are working for MicroStrategy, which could lead to an investor exodus," Jason added.

His remarks come in response to MicroStrategy's application to significantly expand its number of issued shares.

According to the American economic magazine Barron's, MicroStrategy has applied to the Securities and Exchange Commission (SEC) to increase the number of its Class A common stock from 330 million to 10.33 billion, and its preferred stock from 5 million to 1.05 billion.

Barron's assessed this move by MicroStrategy, stating, "Considering MicroStrategy's current stock price, if the additional stock issuance is implemented, MicroStrategy's market value would surpass the value of Bitcoin worldwide," and "It seems like MicroStrategy is trying to accumulate Bitcoin globally."

The expansion of MicroStrategy's stock issuance is part of its strategy to execute the '21/21' plan, which aims to raise $21 billion in equity capital and $21 billion in fixed-income products, including bonds, convertible bonds, and preferred stock, to support future Bitcoin accumulation.