Is MicroStrategy Preparing For Another Major Bitcoin Investment?

Michael Saylor, founder of MicroStrategy, quelled speculation about the company's next big bitcoin acquisition.

On December 28, Saylor took to social media platform X to share secret insights about the SaylorTracker portfolio, which tracks microstrategy bitcoin purchases.

Hints of more Bitcoin in the future?

In the article, Saylor stated that the indicator has “worrisome blue lines”, which led to speculation that another large-scale buying could be coming. In recent weeks, similar hints from Saylor have preceded public announcements of major Bitcoin investments.

“The blue lines on Saylor's tracker,” Saylor said.

Microstrategy has been on a Bitcoin buying spree, accumulating 192,042 BTC at an estimated cost of $18 billion. Bitcoin's price has risen from $67,000 to $108,000 during this time, while MicroStrategy's stock price has more than quintupled this year, now trading at around $360 – up 400% year-to-date.

MicroStrategy's stock performance and inclusion in the Nasdaq-100 has been impressive. The company's core business, from enterprise data analytics to bitcoin inventory, has made it the largest public holder of the cryptocurrency. However, this aggressive strategy has faced its own criticism.

Some market participants argue that Cyler's announcements of Bitcoin purchases create volatility. Critics say day traders shorted bitcoin after the purchases were announced, leading to inflation and a drop in MicroStrategy's stock price.

“The problem with sellor buys is announcing them, then day traders immediately start shorting BTC because they know a big buyer has bought. Then Bitcoin goes back and the $MSTR stock goes up, not up,” said one crypto trader.

Moreover, some have pointed out that the purchase pattern was influenced by the black period plan in January, during which Bitcoin purchases will be temporarily suspended.

However, early signs suggest that the Bitcoin buying won't stop anytime soon. Instead, MicroStrategy prepares for its next steps, which include increasing its authorized share of Class A common stock and preferred stock. The proposal seeks to expand Class A stock from 330 million to 10 billion shares and preferred stock from 5 million to 1 billion.

Market observers say that this move will significantly increase the ability to issue shares in the future, which will allow more funds to be allocated for Bitcoin purchases.