Bitcoin Giant MicroStrategy Could Compete with Amazon and Alphabet with Its New Plan - Coin Bulletin

With the vote of the shareholders on January 21, MicroStrategy aims to increase the company's total authorized share count from 330 million to 10.3 billion. This increase will position MicroStrategy just behind giants like Nvidia, Apple, Alphabet, and Amazon in terms of share count in the Nasdaq 100 Index.

This plan will allow the company to create more capital to finance its Bitcoin purchases.

Michael Saylor, the co-founder and chairman of the company, has a 47% voting right in the ballot. Therefore, the approval of the proposal is expected. MicroStrategy had previously increased its capital by using shares and debt instruments by following a similar strategy.

Bitcoin Strategy

The company, which has been following a Bitcoin-focused strategy since 2020, has accumulated $44 billion in Bitcoin. Thanks to this strategy, MicroStrategy's shares have gained over 2,500%, while the price of Bitcoin has increased by 800% over the same period.

However, such a massive increase in shares is generally viewed negatively by investors, as it dilutes earnings per share and shareholder rights. Analysts point out that if existing investors see this as a necessity for the continuation of the strategy, the negative reactions may be limited.

The Future of the Company

While MicroStrategy's software business unit has reported losses in recent quarters, the company continues to draw attention with its Bitcoin purchases. However, some analysts warn that the company could lose its leverage position with this plan. The company's current plan is based on reducing debt and increasing share issuance.

If the plan is approved at the shareholder meeting to be held on January 21, there is curiosity about how MicroStrategy will continue its Bitcoin-focused strategy.