Is MicroStrategy Gearing Up for Another Major Bitcoin Investment?
MicroStrategy co-founder Michael Saylor has reignited speculation about the company’s next big Bitcoin acquisition.
On December 28, Saylor took to social media platform
Are there signs of more Bitcoin in the future?
Thaler said in the post that the mark had a “troubling blue line,” leading to speculation that another large-scale purchase could be imminent. In recent weeks, Similar tips from Saylor Before a major Bitcoin investment is officially announced.
“Troubling Blue Line on SaylorTracker,” Saylor point out.
MicroStrategy has been on a Bitcoin buying spree, purchasing more than 192,042 Bitcoins at an estimated cost of $18 billion. During that time, the price of Bitcoin has climbed from $67,000 to $108,000, while MicroStrategy shares have soared more than fivefold this year and currently trade around $360, up 400% year-to-date.
MicroStrategy stock performance and Incorporated into Nasdaq 100 Index It’s already amazing. The company’s shift from its core business of enterprise data analytics to a focus on Bitcoin accumulation has made it Largest public holders of cryptocurrencies. However, this aggressive strategy has also faced criticism.
Some market participants believe Thaler’s announcement of Bitcoin purchases created volatility. Critics claim that day traders shorted Bitcoin once the purchases were revealed, causing a price correction and a drop in MicroStrategy’s stock price.
“The problem with Thaler’s buying is that as soon as he announces his buying, day traders start short BTC because they know the big buyers are done. Then Bitcoin retraced and $MSTR stock fell instead of rising,” one cryptocurrency trader explain.
Additionally, some said purchasing patterns were reportedly influenced by its products. Planning a blackout period in Januaryduring which it will suspend Bitcoin acquisitions.
However, early signs suggest that Bitcoin buying won’t stop anytime soon. Instead, MicroStrategy is preparing for its next steps, which include Increase in Authorized Shares of Class A Common Stock and preferred stock. The proposal seeks to expand Class A shares from 330 million to more than 10 billion and preferred shares from 5 million to 1 billion.
Market observers believe that this move will significantly increase its ability to issue shares in the future, allowing it to allocate more funds to buy Bitcoin.
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