It’s the 16th anniversary of the release of the Bitcoin whitepaper by the elusive Satoshi Nakamoto. In celebration of this historic moment, MicroStrategy’s CEO, Michael Saylor, posted a genuine “Thank you, Satoshi” to his X (formerly Twitter) account. However, this message was more than a thank you.
He included a screenshot of the stock prospectus supplement for MicroStrategy which showed ambitious plans to raise $21 billion by selling Class A common stock. This, however, comes on the heels of MicroStrategy’s earning report where the firm indicated a broader plan to raise $42 billion over the next three years.
Bitcoin Drives Saylor’s Plans
The funds would be sourced to half this amount or $21 billion through a sale of MSTR shares, according to the prospectus. While the $21 billion target is not arbitrary, it is a symbolic match, aligned as it is with Bitcoin’s capped supply of 21 million BTC, a tribute to the original Satoshi vision.
For MicroStrategy, the reason behind the strategy is to acquire more BTC, solidify its place as a top corporate holder of BTC. As of today, the company owns about 10 billion dollars of BTC, or 252,200 BTC. If this latest offering is a success, MicroStrategy would have put in a total of $30 billion into Bitcoin, essentially doubling down on their commitment that Bitcoin is an inflation hedge and market volatility hedges.
The prospectus does however set out potential risks. MicroStrategy’s holdings in BTC will be volatile in price, and could be liquidated on the Market at a Loss depending on the State of the Market. Nonetheless, Saylor’s drive for Bitcoin doesn’t seem to be slowing down. He believes in Bitcoin’s transformational capability as a transformative asset, which is why he includes his tribute to Satoshi there.
