Michael Saylor's company is continuing its strategy of aggressive bitcoin accumulation with a new major fundraising, even as its stock undergoes a brutal correction on the markets.
MicroStrategy raises $3 billion to buy Bitcoin
MicroStrategy, leader in business intelligence, finalized on November 21 an issuance of 0% senior convertible bonds worth $3 billion, maturing in 2029.
This operation is part of a larger plan to raise $42 billion over three years to acquire more bitcoin. The same day, MSTR stock fell more than 25%going from $536.7 to $397.28 at the close.
These bonds, issued with a conversion premium of 55% and a strike price of approximately $672, will pay no interest to holders. The total funds raised could allow the acquisition of approximately 30,600 bitcoins at current prices.
This new issue comes just a few days after a previous fundraising, initially set at $1.75 billion and then increased to $2.6 billion on November 20.
A risky bet that divides investors
MicroStrategy's aggressive strategy sparks mixed reactions among investors. Citron Research notably announced that it had closed its short position on the stock, estimating that the stock had become “overheated” and that its trading volume had “completely detached itself from the fundamentals of Bitcoin”.
Despite the recent correction, MSTR remains one of the big winners of 2024 with a performance of +480% since January. The company currently holds 331,200 bitcoins, valued at over $32.7 billion, making it the largest publicly traded institutional holder.
The stock has become a veritable barometer of the crypto sector, contributing to a record trading volume of $70 billion on November 21 within the “Bitcoin industrial complex”, which includes US spot Bitcoin ETFs and other stocks like Coinbase .
Michael Saylor's bold strategy continues to polarize the market, as Bitcoin moves around $98,400, very close to the symbolic threshold of $100,000.
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