MicroStrategy (MSTR) shares surged a record 13% in Monday’s close after the company announced it had bought $4.6 billion worth of bitcoin, with plans to raise an additional $1.75 billion to increase its cryptocurrency investments.
The company’s shares have outperformed most of the S&P 500, rising 500% since the start of 2024 compared with an 11% gain for Microsoft (MSFT), according to Yahoo Finance data.

Huge profits from Bitcoin:
With 331,200 Bitcoins, MicroStrategy's unrealized profits amount to nearly $13.7 billion, cementing its position as a leader in cryptocurrency-related investments.
The company plans to issue 0% convertible bonds due in December 2029, a move that follows similar issuances in previous years, such as an $875 million issue due in 2028 and another issue due in 2032.
These bonds provide almost free funding sources that the company invests in buying more Bitcoin, relying on the digital currency's prices continuing to rise in future cycles.
Convertible bonds give investors the option to convert their debt into shares in the company, benefiting from the strong performance of the stock.
Investors can also redeem their bonds at maturity, making the investment relatively low-risk.
The biggest challenge remains the high volatility of Bitcoin prices.
Any sharp decline could threaten the company's financial position, increasing the possibility of incurring large losses.
MicroStrategy's bet on Bitcoin is a bold strategy that combines high profit potential with market risk.
The success of this move depends largely on the stability and growth of the digital currency prices in the long term.
