MicroStrategy Inc., led by founder Michael Saylor, has confirmed plans for a major Bitcoin acquisition, supported by $57 billion in authorized capital.
The move comes alongside strong backing from financial analysts at Benchmark and Bernstein, who have both maintained a buy rating on the company and set ambitious price targets for its stock.
Michael Saylor has once again reaffirmed MicroStrategy’s role as a key institutional supporter of Bitcoin. The company plans to use newly authorized capital to significantly grow its Bitcoin reserves, continuing its long-term strategy of converting fiat assets into digital ones.
Saylor emphasized this shift in asset allocation, stating that the company is prioritizing Bitcoin as its primary treasury asset. The plan is to make a substantial purchase in the upcoming week, which could further solidify MicroStrategy’s position as the largest corporate Bitcoin holder.
Innovative Funding Through Equity Offerings
To fund the purchase, MicroStrategy intends to issue new shares of stock, similar in concept to NFTs. These equity offerings allow the company to raise funds directly from investors, which are converted into Bitcoin. This unconventional method of raising capital has drawn attention for blending traditional finance with crypto-native ideas.
By using this strategy, MicroStrategy avoids direct debt while still building its Bitcoin portfolio. It also signals strong investor confidence, as the company continues to attract support for its long-term Bitcoin bet.
Research firms Benchmark and Bernstein have reinforced their bullish outlook on MicroStrategy. Both firms have reiterated buy ratings, suggesting that the company’s aggressive Bitcoin strategy could lead to strong returns. Analysts believe that as institutional demand for Bitcoin increases, companies like MicroStrategy that are heavily exposed to the asset could benefit significantly.