Microstrategy, a business intelligence company becoming a bitcoin giant, became news again. Shareholders have approved a significant increase in the approved shares of companies that allow companies to purchase more bitcoin.
For a few days after the announcement, the company’s shares decreased by 4.2 % from a high price exceeding $ 400 to $ 368.31, and later recovered.
The company has been a bit coinable since Michael Saylor, a co -founder and executive chairman, started initiative in 2020, with more than $ 48 billion of bitcoin, and Microstratezy is currently supplying Bitcoin. I have more than 2 %.
At the center of that is a shareholder voting to increase the number of class A ordinary shares from 3300 million to 10.3 billion. The preferred dividends were obtained, and the priority stocks that were higher than the common shares of asset liquidation were 5 to 1 billion.
Saylor said that voting was needed to further promote bitcoin strategies and increase shareholder value.
The proposal was passed with approximately 56 % approval thanks to the 47 % voting rights of Saylor. The increase in shares is part of Microstrategy’s “21/21 Plan” to raise $ 42 billion through the provision of stocks and bonds by 2027.
MicroStrategy purchased a relentless bitcoin and purchased 11,000 BTC for $ 1.1 billion just before shareholder voting.
The company is currently sitting in a large -scale 461,000 BTC mountain, which is about $ 48 billion at the current price.
Since the first $ 250 million investment in 2020, the company has often purchased more bitcoin every time it is obtained through stock and debt. Despite the market volatility, Saylor is consistent in his view that Bitcoin is a “digital gold” and a hedge for inflation.
He believes in the long -term value of bitcoin and is called a transformation asset that is a hedge for cutting down currency.
The increase in stocks and the purchase of continuous bitcoin have received various reactions from investors and analysts. Microstrategy’s Stock (MSTR) fell 4.2 % after voting and ended at $ 369.10, but showed signs of recovery the next day.
Some people are worried about the risk of entering a tremendous debt to put a lot of company money into bitcoin and do more shopping. But others believe it is a big move that has already been rewarded. Since the Bitcoin Strategy started, MicroStrategy shares have increased by more than 3,000 %.
In the future, MicroStrategy will purchase more bitcoin using newly approved shares. The company has a $ 5.42 billion of shares that can be used in the current plan, but Saylor will evaluate the market status and adjust it as needed.
The increase in MicroStrategy’s share shows a commitment to bitcoin. Yes, there is a risk, but there are also convicted in the long term. Saylor said their strategy was beyond Bitcoin’s purchase, which forms the future of finance.