what happen?
MicroStrategy, the world's largest corporate holder of Bitcoin, purchased 51,780 Bitcoins for US$4.6 billion on November 18. It was the company's largest single transaction since launching Bitcoin Strategy in 2020, accounting for 16% of the total holdings, triggering heated discussion in the market.
MicroStrategy recently announced that it plans to raise up to US$1.75 billion through the issuance of senior convertible bonds with a 0% interest rate to increase its holdings of Bitcoin and other general corporate purposes.
According to the Bitcoin Treasury website, MicroStrategy now holds 331,200 Bitcoins, worth more than $30.3 billion, firmly occupying the position of the world's largest institutional Bitcoin holder.
Increased holdings of 142,000 Bitcoins during the year! How does MicroStrategy’s crazy “buy coins” strategy work?
MicroStrategy is one of the largest public holders of Bitcoin in the world. Even as the cryptocurrency market continues to break new highs in recent days, MicroStrategy continues to buy and accumulate Bitcoin.
MicroStrategy founder Michael. Michael Saylor announced in a post on social platform accounting for 16% of its total holdings.
The current price of Bitcoin has exceeded a record high of US$90,000, and MicroStrategy’s latest average purchase price is US$88,627 per coin, demonstrating its confidence in the long-term value of Bitcoin.
According to data platform Bitcointreasuries, after this acquisition, MicroStrategy’s total Bitcoin holdings have reached 331,200 Bitcoins, with a total purchase cost of US$16.5 billion and an average price of each Bitcoin of US$49,874. It has now achieved an investment return of up to 133%, enough to solidify its position as the world's largest institutional Bitcoin holder.
Since its first purchase of Bitcoin for US$250 million in August 2020, MicroStrategy has positioned Bitcoin as the "major reserve currency" and has continued to make additional investments.
According to its "21/21 Plan", MicroStrategy plans to raise US$42 billion in the next three years by selling US$21 billion of stocks and US$21 billion of fixed income securities, and continues to increase its holdings of Bitcoin on a large scale. You can see Micro-exit strategy and the founder’s confidence in the long-term development of Bitcoin.
MicroStrategy issues convertible bonds to increase holdings of Bitcoin, shares hit new highs
After MicroStrategy announced it would purchase Bitcoin again, it issued a statement on November 18 stating that the company planned to issue $1.75 billion in convertible bonds. Convertible corporate bonds refer to bonds with additional terms that allow holders to convert these bonds into stocks at an agreed price after a certain period of time after the issuance date.
MicroStrategy will privately issue these convertible bonds to qualified institutional investors at a 0% interest rate and is expected to become the largest transaction in the convertible bond market this year.
After the news was announced, MicroStrategy's stock price closed soaring 13% to $384.79 on the 18th, setting a record high.
With the surge in cryptocurrency, MicroStrategy's stock price has soared to new highs recently, and the company's stock price has even increased more than 6 times this year. MicroStrategy took advantage of this wave of opportunities and signed stock sales agreements with multiple financial institutions. It successfully sold 13.6 million shares between November 11 and 13, raising US$4.6 billion, which became the company's Bitcoin purchase funds.
According to the latest filings from the U.S. Securities and Exchange Commission (SEC), the company still has about $15.3 billion in shares available for sale, showing that it has sufficient financial flexibility and considerable residual power to continue executing its large-scale Bitcoin purchase plan.
As the price of Bitcoin reaches a new all-time high, MicroStrategy has further consolidated its influence in the cryptocurrency market with its "crazy" currency buying strategy. Whether micro-strategy investment strategies can continue to bring huge returns still deserves market attention and analysis.
References: cointelegraph, cointelegraph
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