MicroStrategy (MSTR) reached a new milestone by entering the Top 100 of companies listed on the US stock exchange, and was in position 97. This achievement follows a 12% increase in the price of its shares, which closed on Tuesday at US$430 per share after exceeding US$400 during the day .
The rally aligns with Bitcoin’s new all-time high, which surpassed $94,000.
MicroStrategy shares rise more than 500% in 2024
So far in 2024, MicroStrategy has become one of the biggest stories in the market, with its share price increasing by more than 500% for the year, outpacing the growth of the 100% Bitcoin in the same period.
Over a period of five years, the company’s shares have increased by 2,739%, even surpassing the technology giant NVIDIA (NVDA), which grew 2,688% in that period.
And MicroStrategy currently owns 331,200 Bitcoin, worth more than $30 billion, according to recent market prices.
The company’s bold strategy adopt bitcoin as a treasury asset, implemented in August 2020, continues to generate impressive results.
On November 18, MicroStrategy revealed that it had acquired $4.6 billion in Bitcoin. Additionally, it announced plans to raise an additional $1.75 billion through convertible notes to expand its cryptocurrency holdings.
Issuance of convertible notes to finance Bitcoin acquisitions
To finance your Bitcoin purchases, MicroStrategy plans to issue 0% convertible senior notes due December 2029. These notes offer investors the option of converting debt into shares, a strategy that the company has used in previous rounds, such as issuing $875 million in September 2024 and another in June.
The emission could increase up to US$2,000 million if there is excess demand. This strategy allows MicroStrategy to raise capital at low or interest-free cost, which it then spends on Bitcoin purchases.
Investors find the conversion option attractive, especially given the outstanding performance of the company’s shares. Those who hold the notes can benefit from the appreciation of the stock or choose to recover their principal at maturity.
In pre-open trading on WednesdayMicroStrategy shares rose more than 3%reflecting continued investor confidence in the company’s Bitcoin-driven strategy.
Saylor will present Bitcoin investment strategy to Microsoft board
MicroStrategy’s Michael Saylor announced plans to deliver a three-minute presentation on Bitcoin investment strategy to Microsoft’s board of directors. During an event at X Spaces on Nov. 19, hosted by VanEck, Saylor confirmed that he was contacted by an activist responsible for proposing the initiative to the board, which led him to agree to present.
“I’m going to give a three minute presentation. —is the time allowed— and I will send it to the directory,” he commented.
Its presentation will coincide with a shareholder vote scheduled for December 10, which will decide whether Microsoft should evaluate the possibility of investing in Bitcoin.
The proposal, led by the National Center for Public Policy Research (NCPPR), highlights MicroStrategy’s success with its Bitcoin investment strategy.
Saylor argued that Microsoft and other highly liquid companies, such as Berkshire Hathaway, Apple and Googlethey are missing an opportunity to strengthen value for their shareholders by not owning Bitcoin.
Highlighting the business value of Microsoft, he stated that the 98.5% is linked to quarterly earningswhile only 1.5% comes from tangible assets. He proposed that integrating Bitcoin as a tangible asset could stabilize Microsoft’s stock and reduce risks.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
