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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, dubbed 21/21, marks a decisive step in its long-term strategy. While some see it as a visionary bet, others highlight the colossal risks associated with such an ambition.
A bold strategy to dominate the crypto scene
A name now inseparable from the Bitcoin universe, MicroStrategy continues to amaze with its boldness and long-term vision. The company, led by the indefatigable Michael Saylor, has just presented a monumental proposal: to raise $42 billion to acquire even more bitcoins.
A dizzying figure that inspires 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, which is often considered unstable.
With his 21/21 plan, the goal is clear: to use all possible financial leverage to maximize BTC holdings, thus cementing his pioneering role in institutional adoption of cryptocurrencies.
The 21/21 plan is as ambitious as it is risky
The 21/21 plan is a calculated gamble, but it is not without risks. MicroStrategy plans to raise $21 billion through a stock sale and the same amount through fixed income.
This dual strategy will fuel massive Bitcoin acquisitions over three years, cementing the company’s image as the largest institutional holder of BTC.
In its SEC filing, the company is calling for a significant increase in the number of authorized shares, reaching astronomical numbers: 10.33 billion shares of common class A and more than a billion of preferred shares.
This increased flexibility is necessary to meet the financial requirements of the plan. But some critics believe that this potential stock dilution could unnerve traditional investors who are unaccustomed to such atypical strategies.
Despite these concerns, MicroStrategy seems determined to move forward. In December 2024, the company acquired more than 42,000 BTC, a business worth more than $4 billion.
This buying frenzy demonstrates Michael Saylor’s expectation of a potential exponential rise in Bitcoin prices, boosted by a macroeconomic context favorable to decentralized assets.
Bitcoin, the engine of the financial revolution
Beyond numbers, MicroStrategy symbolizes an ideological shift. By adopting a bitcoin-centric approach, the company is positioning itself as a key player in the transition to the digital economy.
With total holdings of 444,262 BTC, the equivalent of $43.5 billion, it far surpasses its competitors and is redefining the rules of institutional investing.
However, this strategy is not without problems. 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, those bets are worth it. The entrepreneur sees bitcoin as a universal store of value and a hedge against soaring inflation.
While other companies continue to hesitate, MicroStrategy continues to chart its course with unwavering conviction. If successful, the bet could serve as a model for other organizations looking to take advantage of the crypto revolution. But if the tide turns, it could be a scathing warning about the dangers of an overly focused strategy. Meanwhile, North Korean hackers are causing massive downloads at Hyperliquid.
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Fascinated by Bitcoin since 2017, Evariste continued to research the topic. If his first interest was trading, now he is actively trying to understand all the developments focused on cryptocurrencies. As an editor, he strives to consistently deliver high-quality work that reflects the state of the industry as a whole.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.