For the tenth consecutive week, Michael Saylor, co-founder of MicroStrategy, shared the Bitcoin tracker on January 12. This initiative typically hints at another Bitcoin acquisition, which Saylor traditionally reveals on Sundays. As per the SaylorTracker website, MicroStrategy’s Bitcoin inventory has surged by around 51%, showing unrealized profits exceeding $14 billion. The company holds approximately 447,470 BTC, valued at about $42.4 billion, following their latest purchase of 1,070 BTC on January 6.
Despite the value of MicroStrategy shares plummeting by 40% since their all-time high of approximately $543 per share on November 21, mainly due to a broader decline in crypto markets, Saylor’s Bitcoin strategy remains steadfast. His approach has sparked discussion within the cryptocurrency community; some view it as a highly leveraged bet on Bitcoin, while others question the sustainability of relying on debt for such acquisitions.
David Krause, a finance professor emeritus at Marquette University, has voiced concerns that a sharp drop in Bitcoin prices could significantly impact MicroStrategy shares, potentially eroding shareholder equity and risking bankruptcy under severe circumstances.
In October 2024, Saylor introduced MicroStrategy’s “21/21 plan,” a strategy to further acquire Bitcoin through a substantial financial initiative involving $21 billion in equity offerings and $21 billion in fixed-income securities. Moreover, on January 3, MicroStrategy disclosed plans for a potential $2 billion preferred stock offering, contingent on market conditions in early 2025. The funds are intended to bolster the company’s balance sheet and further its Bitcoin acquisition strategy alongside the 21/21 plan.