As a seasoned financial analyst with over two decades of experience under my belt, I find MicroStrategy’s latest moves to be nothing short of intriguing. The company’s decision to raise funding for future Bitcoin purchases through private offerings, while simultaneously acquiring an additional $4.6 billion worth of the digital currency, is a bold strategy indeed. It seems that Michael Saylor and his team are firmly committed to their Bitcoin investment thesis.
MicroStrategy increased the amount for its private sale of convertible senior notes to a staggering $1.75 billion, following their acquisition of approximately $4.6 billion worth of Bitcoin on the same day.
As an analyst, I’m sharing this information: MicroStrategy has announced its intentions to secure funding for future Bitcoin purchases, primarily targeting institutional investors through private offerings. The potential amount of funds raised could reach up to $1.75 billion, with a convertible senior note maturing on December 1, 2029.
1) The notes were offered to U.S. investors following Rule 144A and the Securities Act, and they can also be purchased by certain non-U.S. buyers under Regulation S of the same act. Furthermore, the funds raised are not limited solely to Bitcoin acquisition but will also be used for general business needs.
The first buyers of these notes would be given the opportunity to buy an extra $250 million worth of these notes (in total). MicroStrategy plans to launch this offer on a video webinar, scheduled for November 19th.
MicroStrategy enables the conversion of notes into Class A shares, cash, or a mix of both. Their last offering for these notes took place on September 20, 2024.
MicroStrategy acquires $4.6 billion Bitcoin on the same day
On November 18th, through a public statement, Executive Chairman Michael Saylor disclosed that the company had purchased approximately 51,780 Bitcoins, worth around $4.6 billion in total. The average cost per Bitcoin was roughly $88,627.
I’ve recently found myself part of a significant move within the crypto world. As a proud investor, I’ve just witnessed our company’s investment in Bitcoin surge, now amounting to an impressive $16.5 billion. This latest acquisition effectively doubles our previous holding, and represents approximately 1.57% of the total Bitcoin supply – a substantial addition to our digital assets portfolio.
Currently, MicroStrategy’s average cost for each Bitcoin is approximately $49,847, which represents a decrease of about 47% compared to Bitcoin’s peak price of $93,477. Moreover, their potential profit from these Bitcoins could reach up to an impressive $13 billion.
As an analyst, I’ve observed a significant growth in the company’s shares since they first disclosed their Bitcoin acquisition back in 2020. Initially valued at $15, the share price has skyrocketed to an impressive $384 today, marking an astounding increase of approximately 2,400%.
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2024-11-19 02:04