Michael Saylor’s Hints Follow Pattern of Major Bitcoin Purchases at MicroStrategy

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As a seasoned investor with over two decades of experience under my belt, I can’t help but feel a sense of admiration and anticipation when it comes to Michael Saylor and MicroStrategy. The man has proven time and again that he’s not afraid to take bold steps in the ever-evolving world of cryptocurrencies. His latest hint at potential Bitcoin purchases has me on the edge of my seat, especially considering MicroStrategy’s impressive track record of significant acquisitions following similar teases.

Michael Saylor, a co-founder of MicroStrategy, has suggested that more Bitcoin acquisitions might be on the horizon.

On November 24th, I took to X (previously known as Twitter) to share some exciting insights about our future strategies, following our triumphant $3 billion fundraising round that occurred on November 22nd.

MicroStrategy’s $3 Billion Raise Could Fuel New Bitcoin Purchases

The Bitcoin bull mentioned that MicroStrategy’s portfolio tracker, SaylorTracker, “needs more green dots.” These markers symbolize the company’s each Bitcoin acquisition, fueling speculation about another significant purchase.

Saylor’s latest suggestions seem to mirror his earlier two posts on Sundays, which were followed by declarations of substantial Bitcoin purchases. Over the same duration, MicroStrategy accumulated around 80,000 Bitcoins, valued at more than $6 billion when announced.

In the meantime, the recently acquired $3 billion funding, obtained by selling convertible debt, could be crucial for financing upcoming acquisitions. The private sale of these convertible notes to institutional investors, in compliance with US securities laws, will reach maturity on December 1, 2029. These notes have a 55% premium and an implied share price of $672 for each share of MicroStrategy’s Class A common stock.

Market analysts pointed out that the recent fundraising effort by MicroStrategy is in line with their grand “21/21” program, an endeavor designed to amass $42 billion within a span of three years, primarily using both equity and debt financing options.

The company currently holds the most Bitcoin among all publicly traded entities, totalling approximately 331,200 Bitcoins, worth over $32.7 billion. As per Saylor, MicroStrategy’s financial operations related to Bitcoin have produced a yield of around 41.8% so far this year. This has resulted in an additional 79,130 Bitcoins, which equates to approximately 246 Bitcoins daily, excluding the expenses related to mining.

Furthermore, this approach has significantly contributed to MicroStrategy’s stock growth as well. Shares of MSTR have skyrocketed by more than 515% since the beginning of the year, placing it among the busiest traded stocks on the U.S. market.

Saylor underscores the fact that MicroStrategy’s business activities are heavily influenced by its substantial Bitcoin assets. These assets are skillfully managed using sophisticated financial resources such as Automated Teller Machine (ATM) services, which help minimize risk and fluctuations, ultimately boosting the worth of shareholders.

MicroStrategy derives strength from its Bitcoin holding management. By providing Automated Bitcoin Transaction Machines (ATMs), we convert the ups and downs in Bitcoin’s value into offerings, reduce the risk and volatility of Bitcoin, and remove these factors from our fixed-income securities. Instead, the performance gained is passed on to our MSTR shareholders,” he explained.

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2024-11-25 00:19