Software Maker Microstrategy to Issue Billions of Shares to Fund Bitcoin Purchase

Institutional investors have increased interest in the biggest cryptocurrency Bitcoin in terms of market value. The American company Microstrategy plans to increase the holding of its bitcoin. For this, the company is planning to increase its authorized a class common stock from about 33 crore shares to more than 10 billion shares.

The scheme can be introduced for voting at a meeting of Micostrate’s shareholders on 21 January. However, the company’s founder, Michael Saylor, accounts for about 47 percent in the voting of shares. This software company shares will increase the total number of its outstanding shares to the American company Alphabet, which operates e-commerce and technology, Amazon and Internet search engine Google. In October last year, Micostrateji reported that it would raise about $ 42 billion by issuing debt sales and shares to buy bitcoins in three years.

Since the beginning of buying bitcoins of microstrateji, its share price has increased by more than 2,500 percent. At the end of last year, this company had purchased a large number of bitcoins for eight consecutive weeks. It is the most popular cryptocurrency’s highest holding company. Micostratezi has about 4,46,000 bitcoins. However, questions have also been raised on the strategy of buying bitcoins by selling shares of this company.

The Donald Trump, who is going to take charge as a president in the US next week, has indicated to create a reserve of bitcoin. However, Federal Reserve says that it is not intended to join the new government’s plan to make a big stock of bitcoin. Russian companies are using bitcoins in business from abroad. The Russian government had allowed the use of cryptocurrency to change the law by changing the law and dealing with the restrictions of Western countries. Russian President Vladimir Putin said that the current US government is reducing its role by using the US dollar for political purposes. Because of this, many countries have to move to other assets. He gave the example of bitcoin in these types of assets.