MicroStrategy, a dominant Bitcoin holder among publicly traded U.S. companies, announced late yesterday its plan to issue $500 million worth of convertible senior notes due 2032 through a private offering to qualified institutional investors.
Continuing to Increase Bitcoin Holdings MicroStrategy explained in the announcement that the convertible senior notes would meet the following basic conditions:
More importantly, MicroStrategy stated that the proceeds from this bond issuance would continue to be used to purchase more Bitcoin:
"MicroStrategy intends to use the net proceeds from the sale of these notes to purchase additional Bitcoin and for general corporate purposes."
Since MicroStrategy announced its continuous investment in Bitcoin in August 2020, its stock (MSTR) has entered a surge mode and experienced a concentrated boom period with the arrival of the Bitcoin bull market. The stock price has often been stimulated by multiple announcements of increasing Bitcoin holdings this year.
However, this time, although MSTR rose 3.1% in pre-market trading, it subsequently plummeted, closing at $1,483.88, down 7.47%. Although Bitcoin's performance was also poor last night, MSTR's decline was steeper, indicating that frequent increases in holdings seem to be losing their effect on pulling up the stock price.
Bitcoin surged to $70,000 briefly after the CPI announcement the night before last but continued to decline afterward, hitting a low of $66,258 at midnight today (14th), and was at $66,630 at the time of writing, down 2.4% in the past 24 hours.
Despite Bitcoin's continued volatility, according to the latest data from bitcointreasuries, MicroStrategy currently holds 214,400 BTC with a purchase cost of approximately $7.543 billion and a current total value of $14.276 billion, resulting in an unrealized gain of $6.73 billion.
The value of MicroStrategy’s Bitcoin holdings has grown to about $13.5 billion since the company began buying the digital asset as part of its efforts to hedge against inflation.
JinseFinanceMichael Saylor strategically sells MicroStrategy stock, netting $372.7M amidst 80% surge. Actions part of pre-arranged plan, not indicative of confidence. Move coincides with company's valuation rise. Saylor anticipates Bitcoin halving event, remains optimistic about MicroStrategy's future as leveraged Bitcoin investment.
Xu LinMicroStrategy’s Bitcoin holdings have surpassed $11 billion and its shares are likely to rise on increased institutional Bitcoin demand and the cryptocurrency’s halving, Benchmark said.
JinseFinanceTesla is clinging to Bitcoin, and MicroStrategy continues to increase its investment in Bitcoin. Is the market leader really coming?
JinseFinanceVanguard's substantial 8.24% stake in MicroStrategy provides indirect exposure to Bitcoin despite their cautious approach to the cryptocurrency market. This connection raises questions about the potential impact of Bitcoin price fluctuations on Vanguard's mutual funds and MSTR shares, offering clients an indirect route into cryptocurrency investment. As the crypto landscape evolves, the emergence of new Bitcoin-related products is anticipated, with the industry closely watching Vanguard's response.
Cheng YuanMicrostrategy's aggressive Bitcoin investments and innovative Lightning Rewards program underscore its strong belief in cryptocurrency as a key corporate asset.
BrianSaylor previously stated that the move would allow him to meet his “personal obligations” and, of course, purchase more Bitcoin.
JinseFinanceMicroStrateg was founded nearly 35 years ago, and for much of its history it was a little-known software company focused on business intelligence. MicroStrategy's investor appeal comes almost entirely from Bitcoin.
JinseFinance
The Bitcoin market has been extremely volatile and leaning towards dips that left many traders and investors on panic mode. ...
Bitcoinist