In a most audacious display of financial ambition, the esteemed firm of MicroStrategy has put forth a proposal for a stock offering, ostensibly to procure funds for “general corporate purposes.” However, it is abundantly clear that the acquisition of more Bitcoin (BTC) is the true aim of this venture, thus revealing their unwavering determination to amass this digital treasure. 💰
As per an announcement made on the 27th of January, MicroStrategy has resolved to offer a staggering 2.5 million units of its perpetual strike preferred stock. This particular variety of stock, one might say, is akin to a fine wine—possessing a liquidation preference and bestowing dividends at a fixed rate. Moreover, holders are granted the delightful option of converting it into common stock, should they so desire. 🍷
It is worth noting that the offering shall carry a per-share liquidation preference of $100, with dividends to be disbursed quarterly, commencing on the 31st of March. One can only imagine the jubilation of shareholders as they await their quarterly windfall! 🎉
In their announcement, MicroStrategy boldly proclaimed itself the “world’s first and largest Bitcoin Treasury Company,” a title that suggests their business intelligence software has taken a backseat to their newfound obsession with digital currency. How quaint! 😏
Despite a rather disheartening decline in revenues of 10.3% year over year, amounting to $116.1 million, and a gross profit margin that has shrunk from 79.4% to a mere 70.4%, MicroStrategy has managed to achieve a commendable 5.1% Bitcoin yield. A new performance metric, indeed! 📉
BTC Purchases Ramp Up
In a most spirited endeavor, MicroStrategy has escalated its Bitcoin purchases, having announced plans to raise a staggering $42 billion for its digital asset war chest. Their so-called “21/21 Plan” consists of an equal division of $21 billion in equity and $21 billion in fixed-income securities. A rather ambitious undertaking, would you not agree? 🤔
Among their most notable acquisitions was the purchase of 11,000 BTC just prior to the inauguration of US President Donald Trump, at an average price of approximately $101,191. A splendid investment, if I may say so! 💸
Furthermore, MicroStrategy’s most significant Bitcoin acquisition transpired in November, when they procured a remarkable 55,000 coins for the princely sum of roughly $5.4 billion. One can only wonder at the audacity of such a transaction! 😲
In a curious turn of events, Bitcoin miners appear to be emulating the MicroStrategy model, opting to build their own digital asset stockpiles. “In 2024, a notable shift emerged among Bitcoin miners, with many choosing to retain a larger portion of their mined Bitcoin or refraining from selling altogether,” as reported by Digital Mining Solutions and BitcoinMiningStock. How very prudent of them! 🧐
Moreover, other public companies have also taken to adding Bitcoin to their balance sheets, including Semler Scientific, KULR Technology, and Metaplanet. It seems the allure of Bitcoin is indeed irresistible! 🥳
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2025-01-27 20:05