Meta shareholders have suggested allocating part of its $72 billion in cash reserves to Bitcoin (BTC), citing concerns over inflation, while MicroStrategy, led by co-founder Michael Saylor, has aggressively pursued Bitcoin despite mixed reactions by the financial community. Long Term Viability As of January 12th, MicroStrategy holds 447,470 BTC, valued at around $42.4 billion, following a recent purchase of 1,070 BTC. However, the company saw its stock fall by about 40% compared to its peak in November, reflecting broader market downturns. Meanwhile, Saylor remains steadfast in his belief that Bitcoin can serve as a superior long-term store of value, urging other companies to adopt it as a treasury asset. While some view this strategy as viable, critics like finance professor David Krause warn that it could lead to significant losses for the company, even raising the possibility of bankruptcy if prices fall sharply. 21/21 Plan Despite these concerns, Saylor launched the 21/21 plan to raise $42 billion for additional Bitcoin acquisitions through equity and debt offerings. This approach underscores a heavy reliance on both markets for liquidity. As the company presses forward, its Bitcoin strategy could become a test case for corporate adoption of the flagship cryptocurrency, with the outcome shaping the future of corporate treasury management and raising questions about the risks of over-concentrating in a volatile asset.
