Cryptocurrency giant MicroStrategy recently announced plans to continue increasing its Bitcoin holdings through a stock issuance.
According to the preliminary proxy statement the company submitted to the SEC later on Monday, MicroStrategy is seeking shareholder approval to increase the authorized number of Class A common stock and preferred stock. This will provide more financial support for the company, which has transformed from a software manufacturer into a Bitcoin accumulator.
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<h2>MSTR Plans Significant Stock Issuance</h2>
On Thursday, the price of Bitcoin fell by about 2.6%. Meanwhile, the composite index of other cryptocurrencies, including Ethereum, Solana, and Dogecoin, also dropped by about 3%.
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Sean McNulty, trading director at Arbelos Markets liquidity provider, stated:
<blockquote>
“The market has a forward-looking attitude towards MicroStrategy's Bitcoin purchases, which was the main reason for the previous market rally. Monitoring MicroStrategy's developments has now become part of my daily work.”
</blockquote>
Some traders have expressed concerns about market volatility in the coming days. A record $43 billion in open contracts will expire at the Deribit derivatives exchange, including $13.95 billion in Bitcoin options and $3.77 billion in Ethereum options. McNulty predicts:
<blockquote>
“Market makers may unwind their hedges and short Bitcoin positions, which could lead to significant market fluctuations.”
</blockquote>
<h2>MicroStrategy's Ambitions</h2>
MicroStrategy noted in its filing that the company's pace of Bitcoin acquisitions is “much faster than initially expected.”
Since announcing plans to raise $21 billion through stock and bond issuances at the end of October last year, MicroStrategy has actively pursued Bitcoin acquisitions. To date, MicroStrategy has issued approximately $13 billion in stock and $3 billion in convertible bonds under this plan, using all of these funds to purchase Bitcoin.
Currently, MicroStrategy has become the world's largest corporate holder of Bitcoin, holding approximately 439,000 Bitcoins, valued at about $42 billion, accounting for over 2% of the total Bitcoin supply globally.
It is worth noting that MicroStrategy's future stock issuance may further dilute the holdings of existing shareholders. Currently, the company has issued about 223 million shares of Class A common stock, with a fully diluted share count of approximately 260 million shares
If this issuance plan is successfully implemented, the number of outstanding shares of MicroStrategy may approach its authorized limit of 330 million shares next year.
MicroStrategy CEO Michael Saylor has long been known for promoting Bitcoin investments. Analysts believe that this significant increase in the number of shares to be issued demonstrates his ambition to make MicroStrategy the &#34;absolute leader&#34; in the Bitcoin market.
Risk Warning and Disclaimer
The market has risks, and investment requires caution. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Investment based on this is at one's own risk

MSTR

MicroStrategy plans to raise funds through a stock issuance to continue increasing its Bitcoin holdings, seeking shareholder approval to increase the authorized number of Class A common stock and preferred stock. Despite the decline in Bitcoin and other cryptocurrency prices, the market remains optimistic about MicroStrategy's Bitcoin purchasing behavior. Since last year, the company has issued approximately $13 billion in stock and $3 billion in convertible bonds, becoming the world's largest corporate Bitcoin holder, with approximately 439,000 Bitcoins

- MicroStrategy plans to increase its Bitcoin holdings by issuing more shares, seeking shareholder approval to raise the number of authorized Class A common and preferred shares.  
- The company has already raised approximately $13 billion through stock and bond issuances for Bitcoin purchases, becoming the largest corporate holder with about 439,000 Bitcoins.  
- This move may dilute existing shareholders' stakes, as the total number of shares could approach the authorized limit of 330 million if the plan is successful.

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Additional upward momentum? MicroStrategy plans to sell more shares to raise funds for purchasing Bitcoin