Michael Saylor, co-founder of MicroStrategy, just hinted at the possibility that the company will continue to increase its Bitcoin holdings after completing a $3 billion fundraising round on November 22, 2024.
MicroStrategy may buy more Bitcoin after its latest fundraising round
In a post on X on November 24, Saylor revealed MicroStrategy's plans regarding adding more Bitcoin to its portfolio. He emphasized that the company's portfolio tracking tool, SaylorTracker, 'needs more green dots,' each green dot representing a Bitcoin purchase, raising speculation about whether MicroStrategy might make another large purchase.
Saylor's suggestion echoes similar posts he made the previous Sunday when MicroStrategy announced large-scale Bitcoin purchases. During this period, the company purchased approximately 51,780 BTC, worth $4.6 billion at the time.
The $3 billion in financing that MicroStrategy has just raised through the issuance of convertible bonds could be an important source of funding to continue its Bitcoin buying strategy. These convertible bonds, sold to institutional investors in accordance with U.S. securities law, will mature on December 1, 2029. The bonds have a 55% premium and an implied conversion price of $672 per Class A common share of MicroStrategy.
Analysts believe this fundraising activity aligns with MicroStrategy's ambitious '21/21' initiative, in which the company aims to raise $42 billion over the next three years through a combination of equity instruments and fixed income products.
MicroStrategy continues to be the largest holder of Bitcoin
With 331,200 BTC currently held, worth over $32.47 billion, MicroStrategy remains the largest publicly traded entity owning Bitcoin. According to Saylor, the company's treasury operations yielded a 41.8% return from Bitcoin over the past year, with net profits of approximately 79,130 BTC, equivalent to about 246 BTC per day, not including operational costs related to Bitcoin mining.
This Bitcoin holding strategy not only benefits the company's finances but also boosts MicroStrategy's stock performance. MSTR shares have increased by more than 515% since the beginning of the year, becoming one of the most traded stocks in the United States.
Saylor emphasized that MicroStrategy's success largely stems from optimizing Bitcoin assets through strategic financial instruments, such as ATM services, which help the company minimize risk and volatility while increasing value for shareholders.