MicroStrategy’s Michael Saylor has no intention of selling from his firm’s $5 billion Bitcoin chest despite a 40% drop in the value.
Tag: Saylor
MicroStrategy doles out $240M on additional Bitcoin purchase
Business intelligence outfit and corporate Bitcoin (BTC) whale MicroStrategy has increased its BTC ownership with the additional purchase announced on Monday.
MicroStrategy CEO Michael Saylor announced the purchase of 5,050 BTC for about $242.9 million at an average of $48,099 per coin.
In a Form 8-K filing with the United States Securities and Exchange Commission published on Monday, MicroStrategy stated that it has added 8,957 BTC to its corporate Bitcoin treasury in Q3 2021.
As previously reported by Cointelegraph, MicroStrategy recently bought 3,907 BTC at the cost of about $177 million between July 1 and Aug. 23.
Following the latest Bitcoin acquisition, the company now holds about 114,042 BTC acquired at an aggregate purchase cost of $3.16 billion.
According to the Form 8-K document, MicroStrategy’s Bitcoin cost comes down to about $27,713 per BTC inclusive of fees and sundry expenses.
MicroStrategy Buys The Dip With $489 Million BTC Purchase
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MicroStrategy has completed a $489 million Bitcoin purchase from the proceeds of the sale of $500 in senior debt notes last week.
MicroStrategy and the Big Bitcoin Bet
The American intelligence firm added 13,000 BTC to its treasury from $489 million (after expenses) raised from corporate bonds sale to accredited investors. The average purchase price was $37,617.
The company’s most recent purchase is down 13.2% in value due to fear of a crypto trading ban in China.
MicroStrategy is the world’s largest Bitcoin holder among publicly traded companies. It holds $105,000 BTC worth $3.4 billion at current prices. The total aggregate of MSTR’s purchase is $26,080.
The MSTR stock is now a pseudo-Bitcoin ETF; more than 60% of its Bitcoin purchases are from the $2.1 trillion raised from stock convertible and debt notes. The MicroStrategy share price now largely relies on Bitcoin’s performance.
We may not have a Bitcoin ETF, but Microstrategy might as well be one pretty soon https://t.co/keJORJmFS9
— Travis Hole (@travscrub10) June 14, 2021
Last week, the firm also announced a $1 billion stock sale to use the money in operations and purchase Bitcoins, on top of the $500 million debt purchase completed today.
This morning, famed macro-trader Dr. Michel J. Burry ridiculed MicroStrategy’s Bitcoin buys and the bullishness in a now-deleted tweet, appearing to mock investors for taking their queues from the company.
Burry tweeted the MicroStrategy stock ticker “MSTR” along with a YouTube link to the Metallica song, “Master of Puppets,” perhaps implying that MicroStrategy was attempting to manipulate the market by sending buy signals with its purchases.
Burry, who is famous for successfully shorting the 2007-2008 housing bubble, recently alarmed investors by tweeting about the upcoming “bubble of all bubbles” in all asset classes, including Bitcoin.
Bitcoin was last trading at $32,500 on Coinbase.
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As Crypto Markets Dip, Michael Saylor’s MicroStrategy Raising $500,000,000 To Buy More Bitcoin
Michael Saylor’s MicroStrategy is heading to the lending markets to finance another Bitcoin buying spree.
The firm says that it will borrow approximately $500 million in the form of senior secured notes. All proceeds will go towards buying more Bitcoin at a time when the flagship crypto asset is nearly 50% down from its all-time highs.
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“MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional Bitcoins.”
The business analytics software firm adds that it will borrow from “qualified institutional buyers” as well as from “persons outside of the United States”.
MicroStrategy’s original announcement stated an aim to acquire $400 million in notes but later boosted it by another $100 million.
Currently, the Saylor-led firm holds 92,079 Bitcoin which were acquired at an average price of around $24,450. With BTC trading at $33,842 at time of writing, $500 million would translate to about 14,774 Bitcoin.
During the Bitcoin 2021 Miami conference earlier this month, Saylor argued that Bitcoin’s return on investment makes borrowing in order to invest in the flagship cryptocurrency feasible.
“[MicroStrategy] realized that if that asset is going to go up by more than 10% a year and you can borrow money at 5% or 4%, or 3%, or 2%, then you should pretty much borrow as much money as you can and flip it into the asset.”
The MicroStrategy CEO also disclosed that the tech firm’s Bitcoin investments improved the company’s financial performance significantly.
“We say Bitcoin is hope. Bitcoin fixes everything…that certainly was the case with our stock…. It imbued life into the company… Morale was dramatically boosted. We just had the best first quarter we’ve had in a decade.”
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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MicroStrategy Receives Over $1.5B In Orders For $500M Notes To Fund Bitcoin Purchases
MicroStrategy is one of the loudest crypto advocates listed on Wall Street. Now, the Michael Saylor-led company is engaging in one of the first-ever corporate bond sales that specifically earmarks the proceeds for Bitcoin purchases.
MicroStrategy’s Strategy? Buy The Dip
After initially planning to issue $400M of the debt, by the time the deal was launching on Monday, the company saw immense demand. Saylor and team elected to up that amount to $500M with Tuesday’s junk bond sale. These type of bonds generally offer more aggressive yields, while running a higher risk of default. The secured notes where reportedly sold at a yield of 6.125%, according to reports, after earlier pricing discussions around 6.25% and 6.5%. Investment bank Jeffries led the offering.
The news comes after a bevy of Bitcoin purchases throughout this first half of the year. To start the year, MicroStrategy locked in 20,000 BTC with a hefty price tag in excess of $1B. The company grabbed a few hundred more in recent weeks at around $55K per coin. After a weekend at Miami’s Bitcoin 2021 Conference, Saylor is ready for more.
To date, the firm owns in excess of 90,000 BTC with an average per coin price just shy of $25K. Nonetheless, Bitcoin’s second quarter dip is evident; MicroStrategy reported in a filing this week a roughly quarter billion dollar hit in it’s next earnings report from the crypto’s fluctuating price. After issuing convertible bonds in the past to make crypto purchases, Saylor seems to be set on buying the dip with this first-ever corporate bond sale.
Related Reading | There’s Zero Chance Of Bitcoin Being Replaced Says Saylor
Corporate Bonds Garnering Some Attention
This isn’t MicroStrategy’s first “first”. The company was also one of the first to pay their board of directors in Bitcoin, and Saylor was led the firm to be the first to have a modified corporate strategy integrating Bitcoin. Saylor’s hyper-fixation on Bitcoin in particular has drawn a fair share of critics, but all that aside, MicroStrategy’s business intelligence products are still seeing success with substantial Fortune 500 customers in their wheelhouse.
This week’s bond offering is also notable not just for being the first of it’s kind, but also from the response it drew. The company upped their offering to $500M in notes, but received in excess of $1.5B in orders for the offering – including a large number of hedge funds, according to reports. Despite the recent Bitcoin dip, many major investors still seem to be chomping at the bit. The weeks to come could be particularly telling around their aggressive perspective.
MicroStrategy has come back to earth after yielding substantial attention earlier this year with Bitcoin purchases. | Source: $MSTR-NASDAQ on TradingView.com
Related Reading | Saylor: North American Bitcoin Miners To Form Coalition After Meeting With Elon Musk
Featured image from Pixabay, Charts from TradingView.com
Elon Musk and Michael Saylor Spearhead Meeting To Address Bitcoin’s Environmental Impact
MicroStrategy CEO Michael Saylor reveals that he hosted a meeting with Tesla chief Elon Musk and the executives of eight North American crypto mining companies to discuss the environmental impact of Bitcoin (BTC).
In a new tweet, Saylor says that during the discussion, the parties agreed to form the Bitcoin Mining Council that will focus on making the BTC mining industry sustainable and more transparent with its energy usage.
“Yesterday, I was pleased to host a meeting between Elon Musk and the leading Bitcoin miners in North America. The miners have agreed to form the Bitcoin Mining Council to promote energy usage transparency and accelerate sustainability initiatives worldwide.
Execs from Argo Blockchain, Blockcap, Core Scientific, Galaxy Digital, HIVE Blockchain, Hut 8 Mining, Marathon Digital Holdings, and Riot Blockchain were present and decided to establish an organization to standardize energy reporting, pursue industry ESG (environmental, social, governance) goals, and educate+grow the marketplace.”
Musk, who had recently made statements regarding Bitcoin’s energy consumption that were largely attributed to the flagship crypto asset’s subsequent collapse, confirms that the meeting took place.
“Spoke with North American Bitcoin miners. They committed to publish current & planned renewable usage & to ask miners worldwide to do so. Potentially promising.”
Saylor’s meeting with the SpaceX CEO is not the first discussion between the two billionaires. Saylor also played a key role in getting Musk to bet on Bitcoin, first tweeting at Musk before having formal discussions.
“If you want to do your shareholders a $100 billion favor, convert the TSLA balance sheet from USD to BTC. Other firms on the S&P 500 would follow your lead and in time, it would grow to become a $1 trillion favor.”
Despite his stated concerns about Bitcoin’s energy usage and its 50% collapse from all-time highs, Musk has said Tesla has “diamond hands” and has not indicated any intention to sell.
“Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy. We are also looking at other cryptocurrencies that use <1% of Bitcoin’s energy/transaction.”
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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Sometimes the most simple and obvious trade set ups people over think.
Saylor is buying? I’m buying.
Sam is buying? I’m buying.
Sometimes the most simple and obvious trade set ups people over think.
Saylor is buying? I’m buying.
Sam is buying? I’m buying.
2020/2021 is proving that it’s a lot hard to dump on @michael_saylor and Paul Tudor Jones than it is to dump on overleveraged retail speculators (2018).
2020/2021 is proving that it’s a lot hard to dump on @michael_saylor and Paul Tudor Jones than it is to dump on overleveraged retail speculators (2018).
. @michael_saylor looks like a genius to his shareholders and the world and he bought BTC @ $21500 when everyone was calling for a pull back!
. @michael_saylor looks like a genius to his shareholders and the world and he bought BTC @ $21500 when everyone was calling for a pull back!
EMPLOYEE OF THE YEAR AWARD GOES TO @michael_saylor. Bitcoin
EMPLOYEE OF THE YEAR AWARD GOES TO @michael_saylor.
#Bitcoin https://t.co/OSDzTmIUiO