Bitcoin’s rally is likely influenced by persistent inflation, student debt forgiveness policies, and global trade restrictions.
Kerrisdale Capital, a hedge fund, today disclosed a nuanced investment thesis: going long on Bitcoin while concurrently taking a short position on MicroStrategy shares. This move is predicated on the assessment that MicroStrategy, which has positioned itself as a de facto Bitcoin investment vehicle, is trading at a significantly unjustified premium to the underlying cryptocurrency […]
The bitcoin price implied by MicroStrategy’s share price is $177K, 2 ½ times the spot price of the cryptocurrency, the report said.
MicroStrategy and Coinbase's stock prices could shoot up if short sellers bail out, according to a report by data analytics firm S3 Partners.
MicroStrategy now holds approximately 214,246 BTC ($13.5 billion), which is more than 1% of all the 21 million bitcoin that will ever exist.
MicroStrategy keeps aggressively buying Bitcoin while completing another $603.75 million offering of convertible notes.
MicroStrategy could raise as much as $600 million from its latest convertible debt offering to purchase more Bitcoin. However, JPMorgan analysts have reportedly cautioned that the firm’s reliance on debt to purchase Bitcoin could exacerbate a market downturn. The firm, led by BTC advocate Michael Saylor, has acquired over 15,000 BTC worth nearly $1 billion […]
The post Analysts warn MicroStrategy’s plan to fuel Bitcoin buys with debt could backfire appeared first on CryptoSlate.
The firm announced its plans to raise $500 million in a debt offering on Wednesday only days after purchasing 12,000 BTC with the proceeds of a previous $700 million offering.
American business intelligence and software development company, MicroStrategy has unveiled new plans to acquire an additional Bitcoin, further bolstering its already substantial BTC holdings. MicroStrategy Mega Bitcoin Purchase In The Works In a recent press release published on MicroStrategy’s official website, the software development company announced plans to raise $500 million in convertible debt offerings to purchase more Bitcoin. Just a few days ago the company had sold approximately $800 million in convertible debt offerings, using the proceeds of the sale to acquire about 12,000 BTC valued at about $821.7 million at the time. Related Reading: Shiba Inu Whales Are Accumulating SHIB, Do They Know Something You Don’t? Quite frankly, MicroStrategy seems to be on a full-blown Bitcoin acquisition spree, potentially attributed to the cryptocurrency’s massive bullish rallies recently and its surge to new all-time highs. As of March 11, 2024, the business intelligence firm possesses a total of 205,000 BTC, worth over $15 billion based on CoinMarketCap’s Bitcoin price of $73,411, at the time of writing. With its latest purchase of 12,000 BTC, MicroStrategy has finally surpassed the Bitcoin holdings of BlackRock’s Spot Bitcoin Exchange Traded Fund (ETF). Additionally, the software development company has secured the top position as the leading public company with the largest Bitcoin holdings, surpassing the holdings of both Tesla and Coinbase. As of March 2024, MicroStrategy’s market capitalization has surged to $29.96 billion, reflecting an increase of 10.85% in the last 24 hours. The company is also presently ranked as the world’s 642nd most valuable company by market capitalization. MicroStrategy Sets Sights On Convertible Senior Notes Offerings Since the start of the year, MicroStrategy has purchased nearly 16,000 BTC. This time around the company has chosen to raise capital through convertible senior notes, marking a shift from the previous year when most of its funds for acquiring BTC were generated from equity. According to Market Watch’s report, the business intelligence firm’s stock value has also been on the rise recently, with MSTR prices witnessing an impressive 145% increase in a month. Related Reading: Ethereum Is Not Done: Crypto Analyst Sets New $5,000 Target As stated in its press release, the company intends to sell convertible senior notes to qualified institutional buyers. MicroStrategy has revealed plans to grant early purchasers of the notes an option to buy up to an additional $75 million worth of the notes within 13 days after the initial issuance. The software development firm has disclosed that the notes will remain unsecured, with interests payable semi-annually starting in September 2024. Additionally, MicroStrategy will have the right to redeem the notes from March 2028 or holders can request for the company to make a repurchase, with conversion terms determined at the offering’s prices. The proceeds and excess funds generated from its upcoming $500 million convertible senior notes sale will be used to expand MicroStrategy’s Bitcoin holdings and for general corporate purposes. BTC price falls to $72,700 | Source: BTCUSD on Tradingview.com Featured image from The Guardian, chart from Tradingview.com
The convertible notes Coinbase wants to sell include provisions aimed at aiding its stock investors.
Appearing on CNBC after his company on Monday announced the purchase of an additional 12,000 of bitcoin {{BTC]], MicroStrategy (MSTR) Executive Chairman Michael Saylor said the crypto will be a much more valuable asset than gold in the future.
According to data from BitMEX, BlackRock's IBIT now has nearly 198,000 Bitcoin, outpacing MicroStrategy’s holdings.
The firm had previously announced a $600 million convertible raise on March 4.
MicroStrategy is the largest corporate owner of bitcoin, holding roughly $13 billion worth of BTC.
Bitcoin could target $58,000 after the breakout, Swissblock analysts suggested.
MicroStrategy’s acquisition follows predictions that Bitcoin ETFs could surpass Gold ETFs in assets under management, during the next two years.
MicroStrategy co-founder and executive chairman says his company is re-branding as a bitcoin development company during CNBC interview.
BTC mining stocks and MicroStrategy notch double-digit gains as Bitcoin price hits a 2-year high.
Whether Bitcoin’s era has begun is hard to say, but the challenges to broader adoption may be the last breath of a prolonged crypto winter.
The recently launched spot bitcoin ETFs, excluding Grayscale's GBTC, added nearly another 5,000 tokens to their holdings yesterday, and now at more than 192,000 BTC, hold more of the crypto than MicroStrategy (MSTR), whose total stood at 190,000 as of the end of January.
The decline happened as bitcoin spiked above $45,000 during the day as traders anticipate an imminent spot BTC ETF decision in the U.S.
MicroStrategy and Coinbase marked 6% and 9% gains respectively, before the bell in New York
U.S.-listed companies rode bitcoin's bullish momentum to show significant gains in pre-market trading, including COIN, MSTR, MARA and RIOT.
The U.S. SEC has selected a cash creation and redemption mechanism to mitigate market manipulation risks surrounding a spot Bitcoin ETF.
Early investors in MSTR can consider taking profit as shares appear overvalued and could fall by 20%, according to 10x Research.
The company is financing its Bitcoin purchases with long-term, low-interest debt and share issuance.
A large increase in demand coupled with lower supply should set the stage for higher prices in 2024, he told Bloomberg.
Short sellers have lost more than $6 billion trying to bet against crypto stocks in 2023.
Bitcoin is trading at levels previously seen in April 2022, shrugging off a tough year marked by several implosions and regulatory clampdowns.
MicroStrategy is also looking to raise up to $750 million in a sale of class A common stock.