- MicroStrategy is holding a $600M funding round with plans to use the cash to purchase more Bitcoin.
- The company owns over 190K BTC, making it by far the largest corporate holder of the digital currency.
- MSI will be offering private, accredited investors the ability to purchase convertible notes, due by 2030.
Mister Bitcoin is at it again… There’s believing in the long-term value of BTC – and then there’s the relationship Michael Saylor has with the digital currency. His company, MicroStrategy, is already by far the biggest corporate holder of Bitcoin. But like a dragon hoarding piles of gold, it appears 190K+ BTC simply isn’t enough, as the company buckles down in preparation for further additions to its portfolio.
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“Bitcoin Is the Exit Strategy”
MicroStrategy has been on a buying spree to kick off 2024. In January the tech firm picked up 850 BTC, after buying another 14,620 in December 2023. With BTC’s average buying price in each transaction under $50K USD (AUD $76.8K), they are already looking like inspired investments. But the portfolio, now worth well over USD $12B, still has plenty more room for growth – or so Michael Saylor would have you believe.
The company is currently engaging in a capital raise valued at USD $600M (AUD $922M) directed toward its shareholders. The private offering will allow institutional buyers to acquire convertible debt (due in 2030), which can eventually be converted into MSI equity.
Now, I give you all one guess to figure out what MicroStrategy plans to do with all the proceeds…
If you answered: “To buy Bitcoin” – you’d be correct. At current market rates, USD $600M could buy approximately 8,828 BTC, however, there’s no guessing how far the current rally will take the coin’s price before the capital raise is settled.
But timing the market be damned, Saylor doesn’t care whether the price of BTC is one dollar, or one million. It’s all part of his broader dollar-cost averaging strategy that has so far raked in gains of 50%+ for his company.
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In fact, when quizzed on whether he’s concerned he may be buying BTC at the top of its current run, Saylor pulled out a slick line akin to when Heisenberg says “I am the danger” in Breaking Bad.
It doesn’t get much more romantic than that!
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