NAIROBI (CoinChapter.com) – Michael Saylor, one of the co-founders of MicroStrategy, has recently created speculation regarding the company’s intentions with Bitcoin through a cryptic message on social media. The mysterious post hinted at potential plans for another significant Bitcoin purchase, leaving crypto enthusiasts to speculate.
The mention of “disconcerting blue lines” on the SaylorTracker portfolio, a tool that monitors MicroStrategy’s Bitcoin holdings, on December 28th by Saylor further fueled rumors of an imminent purchase. Similar hints have preceded major Bitcoin acquisitions in the past.
MicroStrategy already possesses 192,042 BTC, bought at an estimated cost of $18 billion. These acquisitions have coincided with Bitcoin’s surge from $67,000 to over $108,000, resulting in significant market buzz. Additionally, MicroStrategy’s stock has soared by 400% this year, currently trading at $360.
However, not everyone is celebrating. Critics argue that Saylor’s announcements cause temporary volatility. One trader explained, “He announces the buys, and day traders short Bitcoin, knowing the big customer is finished. This leads to retracements in BTC and MicroStrategy stock.”
MicroStrategy does not plan to limit itself to Bitcoin purchases alone. The company intends to expand its Class A stock from 330 million to over 10 billion shares, and preferred stock from 5 million to 1 billion. Analysts believe that this move will enable the company to raise funds for even larger Bitcoin acquisitions in the future.
While this plan may excite Bitcoin enthusiasts, some shareholders are concerned about dilution. Skeptics also worry that such a heavy focus on Bitcoin could expose the company to unpredictable market swings.
There is speculation as to whether MicroStrategy will halt purchases during a reported blackout period in January. However, early indicators suggest that the buying spree is not yet over. If anything, Saylor’s cryptic posts suggest that more action is on the horizon.
With Bitcoin already entering 2024 with institutional support, MicroStrategy’s next move could have a significant impact on the market. Whether this leads to another rally or increased volatility remains to be seen.
