Breaking News: MicroStrategy announced plans to buy $42 billion worth of bitcoin
A key part of MicroStrategy's new strategy is a $21 billion equity marketplace (ATM) offering. This funding mechanism will provide significant capital to increase the company's #bitcoin stake, adding to the current 252,220 bitcoins (valued at approximately $16 billion). This significant increase will make #MicroStrategy one of the largest bitcoin holders in the world and demonstrates an optimistic view of bitcoin's long-term potential.
As #Coinbase prepares to summarize its third quarter results, bitcoin is approaching all-time highs.
In addition to the #ATM offering, the company plans to invest another $21 billion in bonds. By balancing high-risk bitcoin assets with fixed-income assets, MicroStrategy aims to reduce the overall volatility of its portfolio while benefiting from the stability that these low-risk securities provide.
the MicroStrategy's Q3 2024 earnings report showed a 10.3% year-on-year decline in revenue to US$116.1 million. Despite the decline in revenue, the company continues to maintain its presence in the market due to its bitcoin-centric strategy. The net loss for the quarter was US$340.2 million, due to adjustments related to strategic financial transactions and digital asset ownership.
MicroStrategy also conducted a 10-to-1 stock split to make the stock more accessible to a wide range of investors. As part of its capital structure adjustment, the company issued $1.01 billion in convertible bonds and redeemed $500 million in secured bonds, demonstrating its commitment to managing debt and maintaining financial flexibility in the face of rapid bitcoin accumulation.
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