Saylor’s Bitcoin Obsession: Euro Funds Now? 💸

by

A Most Curious Venture

The Euro-Denominated Quagmire

So, the chap wants more money for his digital trinkets, does he? Perfectly understandable. One simply must have more Bitcoin. And where to find it? Why, Europe, of course. The Continent is practically overflowing with Euros these days.

Performance, Or Lack Thereof

One observes, with a detached amusement, that the Nasdaq is rather more buoyant than Mr. Saylor’s little hobby. A pity, really. But then, rational investment was never the point, was it?

Michael Saylor’s Strategy (formerly, and rather more sensibly, MicroStrategy) is embarking upon a new expedition into the financial wilderness, seeking replenishment of funds from the European markets to further its…well, let us call it a ‘passionate interest’ in Bitcoin [BTC].

On the third of November, the firm, with a flourish normally reserved for opening a new bar in Belgravia, announced a plan to extract €350 million (or roughly $378 million – a sum one imagines could fund a rather splendid shooting party) via a new preferred stock, charmingly titled Stream [STRE].

This latest offering joins a growing menagerie of financial instruments – MSTR (the common stock, naturally), and a host of other preferred shares with names suggesting a desperate attempt at branding: Strife [STRF], Strike [STRK], Stride [STRD], and Stretch [STRC]. One half expects them to release ‘Scurry’ next.

These shares, bearing the burden of dividend rates, and with some offering the convenience of conversion to MSTR, allow Strategy – ah, how terribly modern – to liquidize assets and purchase more of the coveted digital gold.

A Hoard Grows Larger

The firm, with the zeal of a magpie, added a further 397 BTC (approximately $45.6 million) on the fourth of November, bringing its total Bitcoin stash to a rather alarming 641,205 BTC. The sheer vulgarity of the numbers!

This latest acquisition, according to an SEC filing, was funded by the somewhat desperate sale of MSTR, STRF, and STRK shares. One can almost hear the accountants weeping.

However, the pace of acquisition has, thankfully, slowed. Aside from a rather ostentatious purchase of 21,000 BTC ($2.4 billion) in July – a display of financial bravado that one found quite alarming – the subsequent acquisitions have dwindled to a more modest 500 BTC. Progress, of a sort.

Strategy began this particular folly in 2020, with a modest (by current standards) purchase of 21.4K BTC, at the then-reasonable price of $250M. The firm now boasts holdings valued at approximately $66 billion, with a rather substantial, and yet somehow precarious, unrealized profit of around $19 billion following the recent, and distinctly unsettling, market correction.

One notes, with a touch of schadenfreude, that this ambitious fundraising strategy has encountered certain…challenges. The market-to-net-assets-value (mNAV) ratio is perilously close to falling below 1.

Should this unfortunate event occur, the company will be prevented from selling MSTR shares to fund further Bitcoin escapades. A truly dreadful prospect, obviously.

Analysts, with the air of men about to deliver bad news, suggest that this foray into the Eurozone might provide some much-needed breathing room. A most convenient solution, naturally.

Meanwhile, MSTR stock experienced a rather undignified drop of 3.5% to $264, coinciding with Bitcoin’s retreat below the psychologically important $105,000 mark. The market, it seems, is not entirely convinced.

Year-to-date, MSTR has performed rather poorly, down 8%, whilst BTC has managed a modest 11% gain. The Nasdaq Composite, however, sails along, up a cheerfully robust 23%, demonstrating, unequivocally, that equities remain the saner option. One might even say, the only sensible option. 🥂

Read More

2025-11-05 09:17