MicroStrategy has announced plans to offer another $600 million in convertible senior notes due in 2030 to qualified institutional buyers. The company also intends to provide an option to purchase an additional $90 million aggregate principal amount of the notes. The funds raised from this private offering will be used to purchase additional bitcoin and for general corporate purposes.
Tuesday, March 5, 2024Michael Saylor exploited the fiat money system by issuing convertible notes to buy Bitcoin, boosting MicroStrategy's valuation as the dollar weakened - he is doing it again as MicroStrategy’s share prices rise.
The State of Wisconsin Investment Board, a state agency responsible for public retirement and trust funds, filed reports showing that it holds $163 million in Bitcoin ETFs. $99 million is held in BlackRock's iShares ETF, with $63 million in the Grayscale Bitcoin Trust. The Board also holds shares of Coinbase, Marathon Digital, Riot Platforms, MicroStrategy, and other crypto-related companies. Analysts expressed surprise at the rapid adoption of Bitcoin by a state pension fund.
Publicly-listed companies are increasingly adding Bitcoin to their balance sheets, a trend that has gained momentum since the cryptocurrency's all-time high in March 2024. Notably, six companies, including five publicly traded ones, have collectively purchased approximately 48,836 BTC during this period, with an estimated expenditure of around $3.09 billion. This investment is now valued at approximately $3.1 billion. MicroStrategy, a data intelligence firm, has been a significant player in this trend, accounting for 97% of the Bitcoin acquired by these corporations, while the others, including Block, Metaplanet, Semler Scientific, OneMedNet, and Real Bedford FC, contributed about $92.7 million. The price of Bitcoin has seen fluctuations, retracing as much as 27% from nearly $73,740 to $53,900. While the exact purchase prices for these acquisitions are difficult to pinpoint, estimates suggest that companies likely spent around $63,250 per coin. Since MicroStrategy's initial Bitcoin purchase in August 2020, at least fifteen companies have added Bitcoin to their balance sheets, with the actual number likely being higher. This includes various firms across different sectors, from e-commerce to gaming, reflecting a growing acceptance of Bitcoin as a legitimate asset. The trend of corporate Bitcoin purchases is accelerating, with at least 32 companies making acquisitions in 2024 alone, compared to just nine in 2023. This surge indicates a broader institutional interest in Bitcoin, with many companies adopting strategies similar to MicroStrategy's. In the broader cryptocurrency market, Bitcoin's price has recently dipped below $65,000, settling around $63,572, while Ether is trading at $2,616. Despite this, a significant portion of altcoins tracked by ETC Group has outperformed Bitcoin, and overall market sentiment appears bullish, as indicated by the Cryptoasset Sentiment Index reaching its highest level since March 2024. In a notable development, Changpeng Zhao, co-founder of Binance, has been released from federal custody after serving a four-month sentence. Following his release, Zhao expressed satisfaction with Binance's operations under new CEO Richard Teng, indicating that the exchange is performing well without his direct involvement. As part of his plea deal, Zhao is barred from managing Binance for three years and has shifted his focus towards investing in blockchain technology and education initiatives, including a nonprofit platform aimed at providing free education. Additionally, the cryptocurrency landscape is evolving, with Japan considering a review of its crypto oversight rules, potentially paving the way for the introduction of ETFs. This shift reflects a broader trend of regulatory adaptation to the growing demand for cryptocurrency investment products, signaling a more favorable environment for digital assets in Japan. Overall, the increasing participation of publicly-listed companies in Bitcoin acquisition, alongside regulatory developments and the evolving roles of key figures in the crypto space, highlights a significant transformation in the cryptocurrency market.