Michael Saylor’s company, already the largest institutional holder of Bitcoin, plans to further increase its exposure to the flagship crypto. This bold strategy continues to shape the company’s future, despite market challenges.
An ever more aggressive Bitcoin investment strategy
MicroStrategy continues to surprise the financial markets with its Bitcoin strategy. After acquiring 18,300 BTC for $1.11 billion last week, bringing its total to 244,800 BTC, the company announces a new fundraising.
The company will raise an additional $700 million through a senior convertible bond offering. The move, revealed on September 16 by Michael Saylor, is in line with the company’s Bitcoin strategy. It’s the third such debt offering in 2024, following similar offerings in March and June.
The main objective of this fundraising is twofold. On the one hand, MicroStrategy plans to repay some of its existing debt, including $500 million in senior secured notes. On the other hand, and this is the crucial point, a significant portion of the proceeds will be allocated to the acquisition of new bitcoins.
A risky, but potentially lucrative bet
MicroStrategy founder Michael Saylor’s strategy has paid off so far. Since August 2020, the firm has invested $8.3 billion in Bitcoin, generating an annual return of about 44%. That performance far outpaces the S&P 500, which has gained just 12% annually over the same period.
MicroStrategy's stock has risen a whopping 825%, outperforming even tech giants like Nvidia. This exceptional growth positions the company as the undisputed leader in the S&P 500 in terms of returns.
Despite a recent 4.9% drop in MSTR stock and a 30% drop since its March peak, MicroStrategy remains confident in its strategy. The company continues to bet on the growing adoption of Bitcoin by institutions and retail investors.
In short, MicroStrategy is sticking to its bold vision of Bitcoin as the store of value of the future. This new fundraising confirms the company’s commitment to its crypto strategy, despite challenges and criticism.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
