As a seasoned crypto investor with a knack for spotting trends and a penchant for high-stakes plays, I find MicroStrategy’s recent Bitcoin acquisitions nothing short of exhilarating. The strategic move to amass such a substantial Bitcoin portfolio at an average price of over $95,000 per coin is a bold step that underscores the confidence these business leaders have in the future of digital currencies.
MicroStrategy, a significant Bitcoin investor among corporations, recently bought around 15,400 Bitcoins between November 25 and December 1. This purchase was made possible by the $1.5 billion raised through a stock sale under its at-the-market (ATM) equity program. The transaction was carried out with an average price of approximately $95,976 per Bitcoin.
In a recent filing with the U.S. Securities and Exchange Commission made on December 2nd, the company disclosed that it had sold approximately 3.7 million shares of its Class A common stock, yielding around $1.48 billion in total revenue during the same timeframe. This money was then utilized to acquire 15,400 units of Bitcoin (BTC).
From December 1st, MicroStrategy and its affiliates have amassed a total of 402,100 Bitcoins, currently valued at approximately $38.4 billion based on market prices. We’ve invested a collective sum of around $23.4 billion in these Bitcoin purchases, which translates to an average cost per Bitcoin of roughly $58,263. This implies that our Bitcoin holdings have seen a substantial 64% increase in value since acquisition.
MicroStrategy spent $5.4 billion on Bitcoin the previous week
The $1.5 billion purchase follows a larger Bitcoin investment from the company the week before.
During the period from November 18th to November 24th, the company purchased approximately 55,000 Bitcoins for a total of about $5.4 billion, with each Bitcoin costing an average of around $97,862, as stated in a regulatory document.
As a researcher delving into this project, I uncovered that the substantial acquisition funds were sourced from various avenues. One of these sources was a private offering of 0% convertible senior notes, maturing in 2029. Additionally, the ongoing at-the-market equity program of our company contributed to this endeavor as well.
Michael Saylor tells Microsoft to buy Bitcoin
In simpler terms, Michael Saylor, the head honcho at MicroStrategy, has suggested that Microsoft should follow MicroStrategy’s example and increase its ownership of Bitcoins as well.
In an argument presented to Microsoft’s board, the MicroStrategy chairman, a strong advocate for Bitcoin, proposed that if Microsoft fully invests in Bitcoin, its market value could surge by approximately $5 trillion. Saylor emphasized that Microsoft should not overlook this emerging technology trend, stating that “Bitcoin represents the next significant wave in tech.
As an analyst, I advocate for Microsoft to reallocate their dividend distributions, share repurchases, cash reserves, and debts towards acquiring Bitcoin. I posit that such a move could potentially augment Microsoft’s stock price by hundreds of dollars.
According to Saylor, Bitcoin might contribute as much as $584 to Microsoft’s stock price over the next ten years. He further stated, “By integrating this technology, you can generate trillions in enterprise value and significantly reduce risks for your shareholders.
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2024-12-02 17:06