- MicroStrategy has completed another capital raise, again using convertible notes sold to shareholders.
- The company, headed by Michael Saylor, used the proceeds to purchase more Bitcoin barely a week after doing the exact same thing.
- MicroStrategy now holds over 1% of Bitcoin’s max supply (capped at 21 million).
- The company is by far the largest corporate holder of the cryptocurrency in the world.
Upon reading the headline, I know what you probably think. “Ahh, those lazy writers at cryptonews.com.au are recycling content… When will they learn?”
Related: Standard Chartered Upgrades Year-End Outlook with Bullish Bitcoin Forecast
It will come as a shock, but no – this is not old news. If it feels a bit like Groundhog Day, that’s because it is. Michael Saylor has once again added more Bitcoin to his company’s, MicroStrategy, corporate holdings.
Convertible Debt Raise Completed Despite Warnings From JPMorgan
To be fair, this time Saylor had told everyone from a long way out that he was planning to buy BTC. However, it is a little surprising that literally as soon as the capital raise was completed MicroStrategy added Bitcoin to its portfolio.
When all was said and done, MicroStrategy sold about USD $604M (AUD $926M) to shareholders, in order to purchase about 9K Bitcoin. This comes barely a week after yet another convertible note offering (worth about USD $800M), which Saylor also used to acquire more Bitcoin.
The most recent addition had an average Bitcoin buying price of USD $67,382 (AUD $103K). Despite JPMorgan warning against over-leveraged BTC portfolios, and the fact Bitcoin has dropped 8% in the 24 hours since the sale, Saylor is as bullish as ever.
The highest best use of capital is to buy Bitcoin and hold the Bitcoin. The Bitcoin is going to appreciate in value faster than the S&P index. It’s going to appreciate in value faster than commercial real estate…There’s no point in selling the winner to buy the losers…Bitcoin is the winner.
Michael Saylor All up, MicroStrategy now owns over 1% of Bitcoin’s max supply.
Related: World’s Largest Pension Fund Considers Bitcoin Investment
It’s a figure that’s almost absurd to think about, especially when you consider that the average buying price was almost half of BTC’s value now, at approximately USD $35K (AUD $53.7K).
One thing’s for sure – nobody loves Bitcoin like Michael Saylor does.
Source:
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