MicroStrategy Chairman and CEO Michael Saylor speaks at the Bitcoin 2022 conference in Miami on April 7, 2022.
Eva Marie Uzcategui | Bloomberg | Getty Images
Whenever Michael Saylor says the word “Bitcoin,” micro strategy Stocks are popular. He talks a lot lately.
On Monday, MicroStrategy founder Published on social media platform His company just purchased another 12,000 Bitcoins for nearly $822 million “using proceeds from convertible notes and excess cash.” This brings MicroStrategy’s total Bitcoin holdings to 205,000 Bitcoins, which are currently worth more than $15 billion as the cryptocurrency continues to hit new highs.
Bitcoin rose 2.7% on Wednesday, surpassing $73,400.
MicroStrategy, a company that develops software but primarily acts as a reseller BitcoinWednesday’s 11% gain follows gains of 7.4% on Tuesday, 4.1% on Monday and 9.7% on Friday. The stock has risen 68% since March 6, the day the company announced the plan Price Debt sales have soared 180% this year after soaring 346% in 2023.
Thaler told CNBC’s “Squawk Box” on Monday that Bitcoin will “eat gold.” He said that as digital currencies are added to exchange-traded funds, more institutional investors will own such digital currencies. In addition, Thaler is optimistic about next month’s halving process, which occurs every four years and will slow down the supply of tokens and thus reduce sales.
“The price of Bitcoin has to adjust in order to meet investor demand,” Thaler said. “That’s what’s going to happen to the asset class.”
micro strategy Monday said The company has completed the issuance of convertible notes due 2030 with an interest rate of 0.625%, resulting in net proceeds of approximately $782 million. Analysts at Canaccord Genuity wrote in a report that day that they believe this is the first $800 million convertible bond due in 2030, with a coupon rate below 1% and a conversion premium so high.
“While the majority of the Bitcoin accumulated by the company late last year and early this year was financed through equity, the company is leveraging more of its full capital this time through the issuance of convertible debt,” the analysts wrote. Structure. 』
MicroStrategy said in a press release that it “used the net proceeds from the sale of the notes to purchase additional Bitcoin.”
MicroStrategy has purchased nearly 16,000 Bitcoins since the beginning of the year.
Its stock value appreciated much faster than the Bitcoin it bought. As of Monday, Canaccord’s analysis showed that MicroStrategy’s equity was worth an 86% premium to its Bitcoin holdings.
This number has risen significantly in the past three days. Using Canaccord’s methodology, MicroStrategy’s equity value premium currently stands at around 99%.
MicroStategy was founded in 1989 and specializes in enterprise software and cloud-based services, but its shareholder value is almost entirely tied to its Bitcoin ownership.The company announced its plan The company plans to invest in Bitcoin in mid-2020 and revealed in an earnings call that it will invest $250 million in “one or more alternative assets” over the next 12 months, which may include digital currencies such as Bitcoin.
At the time, MicroStrategy’s market capitalization was approximately $1.1 billion. The company is currently worth $30 billion.
“Is there any company in the world that can borrow $1 billion to invest in your best idea at less than 1% interest?” Thaler asked on CNBC. “Our shareholders received more Bitcoin per share this week than they did a few weeks ago, so that’s very positive for them.”
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