MicroStrategy, the big winner of this bull market!
#mstr MicroStrategy! Amazing company! Dual repair of stocks and coins!
MicroStrategy has actively adopted two strategies since 2020: selling bonds and selling stocks to raise funds to purchase Bitcoin (BTC) and incorporate it into the company's balance sheet.
1. Selling bonds for financing:
MicroStrategy raises funds by issuing long-term bonds (including zero-coupon bonds) to purchase Bitcoin. These bonds typically mature between 2027 and 2028, allowing the company to hold a large amount of Bitcoin at a lower financing cost in the coming years.
2. Selling stocks for financing:
In addition to issuing bonds, MicroStrategy also raises funds to purchase Bitcoin by issuing and selling additional company stock. This strategy takes advantage of the high premium rate of the company's stock, allowing it to finance at a price higher than the net asset value, thus purchasing more Bitcoin.
3. Strategic outcomes:
1) Increase in Bitcoin holdings: As of November 2024, MicroStrategy holds over 252,220 Bitcoins, worth approximately $18.16 billion.
2) Market value enhancement: Through continuous Bitcoin purchases, the company's market value reached $48 billion, with a premium rate of about 164%.
3) Increase in Bitcoin holdings per share: Through stock issuance financing, the company's Bitcoin holdings per share increased from 25.22 to 32.37, an increase of about 28%.
MicroStrategy successfully expanded its Bitcoin holdings, enhanced its market value, and increased its Bitcoin holdings per share through selling bonds and selling stocks, reinforcing its position in the cryptocurrency market.
Impressive 👍
