MicroStrategy Expands Stock Issuance for Bitcoin; Concerns Arise Over 'End of Bitcoin Game'

MicroStrategy, the company with the largest Bitcoin (BTC) holdings in the world, has submitted an application to significantly increase its number of issued shares, drawing criticism.

On the 24th (local time), renowned Silicon Valley investor Jason Calacanis expressed on X (Twitter), "If one entity owns too much, the Bitcoin game will be over. In my personal opinion, the maximum cap should be 10%."

Jason further added, "If MicroStrategy excessively purchases Bitcoin, Bitcoin investors might feel like they are working for MicroStrategy, which could lead to investor exodus."

His remarks came as MicroStrategy submitted an application to significantly increase its number of issued shares.

According to the American economic magazine Barron's, MicroStrategy has applied to the Securities and Exchange Commission (SEC) to increase its Class A common stock from 330 million shares to 10.33 billion shares, and its preferred stock from 5 million shares to 1.05 billion shares.

Barron's evaluated this move by MicroStrategy, stating, "Considering MicroStrategy's current stock price, if the additional stock issuance is implemented, MicroStrategy's market value would surpass the value of Bitcoin worldwide," and "It seems like MicroStrategy is trying to accumulate Bitcoin globally."

Meanwhile, the expansion of MicroStrategy's stock issuance is to implement the '21/21' plan. The 21/21 plan aims to raise $21 billion in equity capital and $21 billion in fixed-income products, including bonds, convertible bonds, and preferred stock. This is intended to support future Bitcoin accumulation.