In these days, continuous good news regarding the price of Bitcoin are particularly welcome, especially for those who own a lot of them, like MicroStrategy.
The company is so happy with its investment that it is seriously considering raising more funds to buy more BTC.
Summary
MicroStrategy’s strategy: good news from the Bitcoin price front
A few weeks ago, the founder and president of MicroStrategy, Michael Saylor, stated that the company does not have an exit strategy for Bitcoin.
Actually, he stated that he considers Bitcoin their exit strategy, and confirmed that they will continue to buy BTC.
The idea seems to be to bet everything on Bitcoin, not as a speculative investment but as a store of value, much like the Taihuttu family did in 2017.
So what they are trying to do is simply collect dollars in order to buy BTC with the simple intention of keeping them in the treasury as a reserve.
It is therefore not surprising that yesterday the news came out that they are trying to raise another $600 million to buy more Bitcoin.
MicroStrategy’s BTC holdings
Currently the company owns 193,000 Bitcoin, more than any other company in the world.
Grayscale’s ETF owns more, but in reality its BTC belongs to the fund’s shareholders. At this moment, not even BlackRock’s ETF owns more BTC than MicroStrategy.
Even the US government owns more of them, thanks to the seizures of Bitcoins from crimes, but it is destined to sell them at auction as soon as possible.
Who theoretically owns the most is always Satoshi Nakamoto, who should have more than a million, but has been missing since 2011 to the point that it is possible to hypothesize that he died without leaving his BTC to anyone.
At this moment, MicroStrategy’s BTC have a total market value of about 13 billion dollars, but they were purchased by investing “only” a little over six billion dollars.
So not only has their investment in Bitcoin already yielded almost seven billion dollars in unrealized gains, but it has also more than doubled the invested capital. It should be added that the market value of BTC could always decrease, reducing their profits.
The new investment
At this point, it is not surprising that they have announced their intention to raise another $600 million on the market to buy more BTC.
The company has announced that it intends to offer convertible senior notes due in 2030, called “notes”, on the market for a total of $600 million. It will do so through a private offering to persons reasonably believed to be qualified institutional buyers.
MicroStrategy also plans to grant initial bond buyers an option to purchase up to an additional aggregate nominal amount of $90 million.
The securities issued will be senior unsecured bonds of MicroStrategy and will bear interest payable semi-annually. They will mature on March 15, 2030, unless they are redeemed early, called or converted.
In the official press release they explicitly write:
“MicroStrategy intends to use the net proceeds from the sale of the bonds to acquire additional bitcoin and for general corporate purposes.”
The good news about the price of Bitcoin, not just MicroStrategy
Meanwhile, after hitting an all-time high in many currencies, including the euro, the price of Bitcoin is also approaching all-time highs in US dollars.
Yesterday it went back above $64,000, something that hadn’t happened since the month of the all-time highs (November 2021), and then it also surpassed the record levels of April 2021.
During the night, it managed to climb above $68,000, for a brief moment, then the declining Asian markets brought it back below $67,000.
These are still very high levels, generated by a real FOMO.
Yesterday, for example, was the second highest trading day ever for Bitcoin ETF volumes on the stock exchange.
Someone is also pointing out that the last time the price of Bitcoin reached new all-time highs in the year of the halving (in 2020), it then went on to mark a further +210% in just 103 days.
However, this does not mean at all that this time it will go the same way, even though there is another possible comparison with the beginning of 2021, when the climb only ended in mid-April. At that time, the bull run had started in October of the previous year, like this year, and had a setback at the end of January, like this year.
At that moment he started with about $10,000 and in just over six months he reached $64,000. However, he later dropped to $30,000, mainly due to the new Chinese ban.
