Michael Saylor, co-founder of MicroStrategy, just hinted at the company's potential to continue increasing its Bitcoin holdings after completing a $3 billion funding round on November 22, 2024.
MicroStrategy may purchase more Bitcoin after the latest funding round.
In a post on X on November 24, Saylor unveiled 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 MicroStrategy possibly making a large next purchase.
This hint from Saylor recalls similar posts he made on the previous Sunday when MicroStrategy announced large-scale Bitcoin purchases. During this period, the company purchased an additional approximately 51,780 BTC, worth $4.6 billion at that time.
The $3 billion financing that MicroStrategy recently raised through the issuance of convertible bonds could be a significant source of funding to continue its Bitcoin purchasing strategy. These convertible bonds, sold to institutional investors under 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 that 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 Bitcoin holder company.
With 331,200 BTC currently held, worth over $32.47 billion, MicroStrategy remains the largest public organization holding Bitcoin. According to Saylor, the company's treasury operations have generated a return of 41.8% from Bitcoin over the past year, with a net profit of approximately 79,130 BTC, equivalent to about 246 BTC per day, not accounting for operational costs related to Bitcoin mining.
This Bitcoin holding strategy not only provides financial benefits to the company but also boosts the stock performance of MicroStrategy. MSTR shares have surged more than 515% since the beginning of the year, becoming one of the most actively traded stocks in the United States.
Saylor emphasizes that MicroStrategy's success largely stems from optimizing its Bitcoin assets through strategic financial tools, such as ATM services, which help the company mitigate risks and volatility while enhancing shareholder value.
