MicroStrategy co-founder Michael Saylor posted the Bitcoin (BTC) tracker for the 10th consecutive week on Jan. 12. The chart has come to signal an impending Bitcoin purchase and is typically posted by the MicroStrategy executive on Sundays.
According to SaylorTracker, MicroStrategy (MSTR) currently holds 447,470 BTC, valued at approximately $42.4 billion, following the company’s most recent acquisition of 1,070 BTC on Jan. 6.
Shares of MSTR are down around 40% from their all-time high price of roughly $543 per share reached on Nov. 21 — corresponding to a general downturn in the crypto markets.
MicroStrategy’s Bitcoin treasury plan has drawn debate from the crypto community, with some using MicroStrategy as a leveraged Bitcoin bet and others raising concerns over the sustainability of Saylor’s debt-based approach.
Related: MicroStrategy’s Bitcoin debt loop: Stroke of genius or risky gamble?
Saylor’s strategy draws concern
David Krause, emeritus professor of finance at Marquette University, recently warned that a sudden and sharp drop in Bitcoin’s price could send MicroStrategy shares plummeting.
The professor told Cointelegraph that a sudden downward price swing for Bitcoin — which experiences significant volatility — could potentially erode shareholder equity and result in a bankruptcy liquidation for MicroStrategy in the most extreme scenario.
Full steam ahead on MicroStrategy’s Bitcoin plan
Despite warnings from critics, Michael Saylor has doubled down on his Bitcoin corporate treasury strategy — even presenting the case for Bitcoin adoption to other corporations such as Microsoft.
In October 2024, the MicroStrategy executive revealed the company’s “21/21 plan” to finance the acquisition of more Bitcoin through $21 billion in equity offerings and $21 billion in fixed-income securities.
MicroStrategy announced separate plans for a potential $2 billion preferred stock offering in a Jan. 3 announcement, subject to market conditions in the first quarter of 2025.
Funds from the potential raise will be used to acquire more Bitcoin and strengthen the company’s balance sheet in addition to the core 21/21 plan of purchasing $42 billion in Bitcoin for its corporate treasury.
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