MicroStrategy calls its shareholders for a crucial vote

MicroStrategy, one of the pioneers of institutional investment in bitcoin, is once again pushing the boundaries with a spectacular initiative: raising $42 billion to strengthen its position in the crypto market. This bold plan, nicknamed 21/21, marks a decisive step in its long-term strategy. While some see it as a visionary bet, others underline the colossal risks linked to such an ambition.

A bold strategy to dominate the crypto scene

MicroStrategy, a name now inseparable from the bitcoin universe, never ceases to amaze with its audacity and long-term vision. The company, led by the indefatigable Michael Saylor, has just submitted a monumental proposal: raise $42 billion to acquire even more bitcoin.

A dizzying figure which arouses as much admiration as skepticism. But what is behind this colossal initiative? And above all, why is MicroStrategy betting so much on the crypto queen?

Since 2020, the company has positioned itself as a staunch defender of Bitcoin, seeing it as much more than just a speculative asset.

For her, bitcoin is a store of value, an alternative to the traditional financial system often considered unstable.

With its 21/21 plan, the objective is clear: exploit all possible financial levers to maximize its holding of BTC, thus consolidating its pioneering role in the institutional adoption of cryptocurrencies.

A 21/21 plan as ambitious as it is risky

The 21/21 plan is a calculated gamble, but one that is not without risks. MicroStrategy plans to raise $21 billion through equity sales and the same amount through fixed income.

This dual strategy will support massive Bitcoin acquisitions over three years, thus consolidating the company's image as the largest institutional holder of BTC.

In its SEC filing, the company requests a significant increase in the number of authorized shares, reaching astronomical numbers: 10.33 billion shares for Class A common and more than a billion for preferred.

This increased flexibility is essential to meeting the financial requirements imposed by the plan. However, some critics believe that this potential dilution of shares could alarm traditional investors, unaccustomed to such atypical strategies.

Despite these concerns, MicroStrategy appears determined to move forward. In December 2024, the company acquired over 42,000 BTC, a deal valued at over $4 billion.

This buying frenzy demonstrates Michael Saylor's anticipation of a potential exponential rise in Bitcoin prices, reinforced by a macroeconomic context favorable to decentralized assets.

Bitcoin, engine of a financial revolution

Beyond the numbers, MicroStrategy's strategy symbolizes an ideological shift. By adopting a resolutely Bitcoin-focused approach, the company is positioning itself as a key player in the transition to a digital economy.

With a total holding of 444,262 BTC, the equivalent of $43.5 billion, it far exceeds its competitors and redefines the rules of institutional investment.

However, this strategy is not without its challenges. Bitcoin's volatility, while mitigated by growing adoption, remains a major risk factor.

Additionally, MicroStrategy's massive exposure to a single asset could pose a problem in the event of a market downturn. But for Michael Saylor, the stakes are worth it. The entrepreneur sees bitcoin as a universal store of value and a bulwark against galloping inflation.

While other companies still hesitate, MicroStrategy continues to chart its course with unwavering conviction. If the bet succeeds, it could serve as a model for other organizations looking to capitalize on the crypto revolution. But if the tide turns, it could be a scathing warning about the dangers of too focused a strategy. Meanwhile, North Korean hackers cause massive withdrawals at Hyperliquid.