Retail investors worldwide are setting their sights on 2025, motivated by the desire for financial growth and portfolio diversification. In the UAE, a survey conducted by trading platform eToro highlighted a rising interest in cryptocurrencies, revealing that 37% of participants are eager to broaden their crypto investments alongside traditional assets such as stocks and real estate. At the forefront of this movement is software giant MicroStrategy, which is actively seeking shareholder approval to expand its Bitcoin investment strategy significantly.
MicroStrategy is embarking on a bold path to solidify its status as a key institutional player in the Bitcoin arena. The company has called for a special shareholder meeting to seek approval for an expanded equity-issuance plan. This strategic move reflects its ambitious “21/21 Plan,” aimed at greatly increasing its Bitcoin holdings over the next three years.
In a proxy filing with the US Securities and Exchange Commission (SEC), MicroStrategy laid out propositions to boost the number of authorized shares for both Class A common stock and preferred stock. If successful, these adjustments will empower the company to issue more shares and raise crucial capital.
- Class A Common Stock: The request is to escalate authorized shares from 330 million to an astounding 10.33 billion.
- Preferred Stock: The target is to increase authorized shares from 5 million to over 1 billion.
These amendments are deemed vital for supporting its strategic initiatives, particularly the overarching goals of the 21/21 Plan, which was in the limelight since October.
MicroStrategy’s 21/21 Plan sets an aggressive target: acquiring an additional $42 billion worth of Bitcoin by 2027. Funding strategies include raising $21 billion through equity sales and another $21 billion via fixed-income securities. The company underscored in its filing that these proposals are crucial for ongoing capital market activities and other corporate objectives.
This focus isn’t an overnight decision; MicroStrategy has been actively purchasing Bitcoin since 2020, and the pace has picked up after the announcement of the 21/21 Plan. In December alone, the company snapped up 42,162 BTC, valued at over $4 billion at current market prices. This acceleration has pushed MicroStrategy’s total Bitcoin holdings to an incredible 444,262 BTC, costing the company $27.7 billion, with an average buying price of $62,257 per Bitcoin. Today, the total worth of its Bitcoin portfolio is around $43.53 billion.
To fuel these acquisitions, MicroStrategy has already secured significant capital through:
- Equity Sales: $13 billion raised via stock issuances.
- Debt Offerings: $3 billion gathered through convertible bonds.
On top of that, the company recently reported impressive yields on its Bitcoin investments, achieved a BTC yield of 17.8% as of October, and aims to sustain an annual yield between 6% and 10% from 2025 through 2027.
This aggressive approach has positively impacted the company’s stock performance. Shares listed on the Nasdaq have surged by over 422% this year, primarily due to growing investor confidence in its crypto strategy. Although the date for the forthcoming shareholder meeting remains undisclosed, its outcome could drastically influence MicroStrategy’s future. A favorable decision would provide the company with the necessary resources to further accelerate its Bitcoin purchases. The next earnings report, scheduled for February 2, 2025, will likely offer insights into its progress and the role of its Bitcoin holdings in overall financial performance.
In the backdrop of these corporate developments, a recent survey by eToro reveals the mindset of retail investors in the UAE poised for financial success in 2025, with a pronounced interest in cryptocurrency expansions. As noted earlier, 37% of respondents plan to increase their allocations to crypto assets, aligning with their broader financial resolutions.
Interestingly, traditional assets remain a focal point for investors in the UAE, with 40% aiming to bolster their investments in stocks, bonds, and commodities, while 38% show an intent to explore real estate opportunities as part of a balanced investment strategy. Among these resolutions, many participants are opting for methods to amplify their incomes, such as starting side businesses or pursuing career advancements.
George Naddaf, eToro’s regional manager, celebrated the proactive spirit among UAE investors, emphasizing their resolutions as a blend of pursuing financial security and a fervent desire for personal growth. He praised the UAE as a pioneer in financial resilience and adaptability.
Not just focused on wealth accumulation, the survey highlighted a commitment to personal development as well, with many participants prioritizing skill enhancement and health goals. This intricate mix of financial ambition coupled with self-improvement embodies the holistic aspirations of UAE residents, as they prepare for the coming year—an indication of a bright financial future ahead.
