|
|
MicroStrategy (NASDAQ stock code: MSTR) recently issued convertible preferred notes aimed at raising approximately $720 million from private investors. The company exceeded its fundraising expectations.
MicroStrategy's latest BTC trading price is $68,000 per BTC.
MicroStrategy has additionally purchased 14 bitcoins from the proceeds of the convertible preferred notes sale, raising a total of $205,000 trillion. Currently, they hold 12,000 bitcoins worth approximately $80 billion. Meanwhile, BTC has surpassed the $72,000 mark, reaching an all-time high. MSTR rose more than 7% during trading hours. The sale of the convertible notes was completed on August 31st.
The acquisition was reported in a filing with the U.S. Securities and Exchange Commission (SEC) by Tyson Corner. MicroStrategy reported the purchase of BTC in a press release on November 1st.
The average purchase price on Monday was $68,000, while the average total price of BTC held by MicroStrategy was approximately $33,700. MicroStrategy began buying bitcoin in 2020. Initially, bitcoin was just another investment avenue for the company.
MicroStrategy's Chairman and Co-founder, Michael Saylor, has become increasingly outspoken about the benefits and potential of Bitcoin. Following Bitcoin's all-time high (ATH) on Monday, Saylor stated in an interview with CNBC that Bitcoin possesses all the advantages of gold without its flaws.
According to MicroStrategy's data, investors exercised the option to purchase an additional $10 billion in notes at full value. This option was reserved for the initial purchasers of the notes. These notes can be converted into MSTR.
The net proceeds from the sale of convertible notes amount to $78.2 billion, which MicroStrategy used to purchase BTC.
MicroStrategy and Bitcoin
Bitcoin is MicroStrategy's primary reserve asset, and the company intends to accumulate more over time. MicroStrategy, originally a software development company, now considers itself a bitcoin development company, demonstrating Bitcoin's significant role in its business strategy.
MSTR's market capitalization is currently approximately $2.57 billion. The stock price has risen by over 170% in the past month. Last month, the company bought 155 bitcoins for approximately $3 billion.
Since May 25th, BTC has risen from $50,000 to over $67,000 on Monday. The digital asset has hovered between $69,000 and $70,000 for several days before breaking the $71,000 barrier. After the SEC approved the trading of 11 bitcoin spot exchange-traded funds (ETFs) in May, the price of BTC soared to the $40,000 mark.
The Bitcoin halving event will halve mining rewards. Currently, about 900 BTC coins are mined daily; after the halving, approximately 450 coins will be mined per day. Bitcoin is mined, and miners need to be rewarded. The halving ensures scarcity and combats inflation, allowing miners to be rewarded for decades to come. Mining and validation are crucial for the Bitcoin network as they maintain the system's integrity.
Compared to many other top assets such as gold, silver, oil, and blue-chip stocks, Bitcoin's price performance has been exceptional.
Adarsh Singh is a true aficionado of DeFi and blockchain technology who quit his job at one of the "Big Four" multinational financial firms to trade cryptocurrencies and NFTs full-time. He has a strong financial background with an MBA degree from a renowned business school. He delves deep into these innovative fields, unraveling their complexities. His expertise lies in discovering hidden gems, be it coins, tokens, or NFTs. NFTs have sparked his keen interest, and his creative analysis of NFTs has initiated captivating narratives. He is committed to making decentralized digital assets accessible to the masses. |
|
Post time 22-3-2024 10:10:27
