-Shares of MicroStrategy (MSTR) soared about 13% to a record closing level in trading on Monday after the company announced a $4.6 billion bitcoin purchase. And reve
aled plans to raise 175,000 pounds. Raising additional coins.MicroStrategy shares have outperformed many other stocks in the sandP 500 index in terms of year-to-date returns. According to Yahoo Finance, MSTR stock is up more than 500% in 2024, while Microsoft (MSFT) is up about 11%.
So far, Michael Saylor's bet on #bitcoin has borne significant fruit. Not only MicroStrategy's shares are rising, but Bitcoin shares are also rising and are also generating a lot of income.
With 331,200 #BTC purchased at an average price of 88,627 yen, the company's unrealized profit is about R$13.7 billion.
#MicroStrategy plans to issue a senior convertible bond in 2029 with a maturity rate of 12% at 0% and use the proceeds to buy new bitcoins.
This will follow a similar debt issue, including an ¥87,500 million convertible bond issue maturing in 2028 for 9 months and another ¥6 million issue maturing in 2032.
Using the convertible bonds, MicroStrategy gains access to interest-free/low-interest capital used to purchase additional bitcoins. The company is betting that the price of bitcoin will continue to rise over the next market cycle.
Convertible Notes offer investors the opportunity to convert debt into MicroStrategy stock. This conversion option is attractive, especially given the company's impressive stock performance.
If MicroStrategy's stock continues to rise, bondholders can convert the debentures into stock and capitalize on the appreciation. If they choose not to convert the bond, they will get the principal back at maturity, making this a low-risk investment.
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