Yesterday, a couple of very positive news came out for Bitcoin, one from MicroStrategy and the other from Coinbase.
These are really great moments for Bitcoin and the crypto market, so it’s quite normal for good news to come in droves.
The latest Bitcoin news from MicroStrategy and Coinbase
The good news regarding MicroStrategy is that the company has announced its intention to raise another $500 million to purchase Bitcoin.
MicroStrategy Announces Proposed Private Offering of $500 Million of Convertible Senior Notes $MSTR https://t.co/nRxijBHsgX
MicroStrategy currently holds over 200,000 BTC, which is slightly less than what BlackRock’s ETF holds.
After all, just a couple of days ago the news came out that they had bought another 12,000.
So far, it has invested almost seven billion dollars to purchase 205,000 BTC at an average price of $33,700, so this huge investment is currently yielding quite a profit.
Indeed, to date his Bitcoins have a total market value of over 15 billion dollars, which is more than double their purchase cost.
Yesterday’s announcement concerns the company’s intention to offer new convertible senior notes to the market with a maturity date of 2031 for a total of $500 million.
The funds collected will be used to acquire additional BTC and for general business purposes.
This is an offer
The bonds will be offered and sold only to “reasonably believed qualified institutional buyers”, and will consist of senior unsecured notes that will bear interest payable semi-annually.
It is not the first time that MicroStrategy raises funds from the market, issuing bonds, in order to finance the purchase of other Bitcoin.
After all, with the profit it is already making, it should be rather simple for the company to pay the interest on the bonds.
Coinbase follows MicroStrategy’s Bitcoin news
Even Coinbase intends to raise funds on the market.
Yesterday, in fact, announced a private offering of one billion dollars of convertible senior notes due in 2030.
As for MicroStrategy, these are bonds consisting of senior convertible securities offered only to entities reasonably believed to be qualified institutional buyers.
The company declares that it intends to use the funds obtained in this way to repay, repurchase, or redeem its 0.50% convertible senior bonds due in 2026, 3.375% senior bonds due in 2028, and 3.625% Senior Notes due in 2031, and for other general corporate purposes.
So in theory Bitcoin has nothing to do with this fundraising, but Coinbase is now the main American crypto exchange, so a potential success of this billion dollar fundraising could benefit the US crypto market.
Indeed, thanks to this fundraising, they will be able to reduce the costs resulting from the interest on previous loans, thanks to the possibility for investors to convert their shares into stocks.
The stock performance of MicroStrategy
Both companies are listed on the Nasdaq stock exchange.
In the last 30 days, the MSTR stock of MicroStrategy has gained 165%, although the majority of this increase occurred primarily by March 11th.
Since then it first marked a brief decline from $1,640 to $1,440, and then rose again in the last two days to the current $1,760.
The most striking thing, however, is the +770% increase over the last twelve months, even though almost all of it is concentrated in the last four.
A year ago the price of MSTR shares was only $200, and even in October it was only $300. The boom started at the end of October, with the rise above $400, followed by a further rise above $500 in December.
It is worth noting that at the end of January 2024 the price had returned to $400, after peaking at $650 at the beginning of the month, but with the rise in the price of Bitcoin towards new all-time highs, the MSTR stock also made another big leap.
It should also be added that in the current pre-market it is registering another +4%, probably also thanks to the news above.
Coinbase’s stock performance
A similar speech can also be made for the COIN title of Coinbase.
In the last thirty days it is recording a +80%, a bit more diluted over time though compared to the +165% of MicroStrategy.
In the last twelve months COIN is up +320%, and in this case the growth is concentrated in the last four.
One year ago the price of COIN shares was around $50, and by the end of October it was still at $70.
In November, however, it rose above $100, while in December it even broke through the $150 wall.
However, at the end of January it had returned to $120, while now it exceeds $250. So in the last month and a half it has more than doubled, thanks to the boom of the crypto markets driven by Bitcoin.
Furthermore, in pre-market it is gaining 2% compared to yesterday’s closing.
