Bitcoin
MicroStrategy Increases Its Bond Sale to Buy Even More Bitcoin
Microstrategy (MSTR) is selling convertibles – now increasing its projected sale to $700 million in notes – to finance the purchase of more bitcoin (BTC-USD). The Market Domination team analyzes MicroStrategy’s stock price relative to the value of its own bitcoin holdings.
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This post was written by Luke Carberry Mogan.
Video transcript
Let’s check out some more trend tickers, starting with microstrategy stocks, jumping company.
Now let’s see it is raising $500 million in a bond sale in an effort to buy more Bitcoin.
So this one, Julie, let’s keep it simple.
Basically, they increased their convertible note supply by about 40%.
And the company says it will use the profits to, you guessed it, buy more Bitcoin.
Of course Michael Saylor, co-founder and president here, started buying Bitcoin in 2020 and has become certainly one of the best Bitcoin bulls out there and is up about 600% since Ms. Saylor.
Yes.
And did you know that microstrategy now owns about 1% of all Bitcoin that has ever been created, which is incredible.
At the same time, we have Gautam Chaan on Bernstein starting microstrategy coverage.
Um, and he’s positive about the stock, but not just positive about the stock.
His price target is $2,890, which would be about 80% higher than it is now.
And it’s so interesting that microstrategy is quite controversial to be clear.
There are people who have sold shares short, there are people who have criticized the premium at which they trade relative to Bitcoin.
If you look at how microstrategy did it this year versus how Bitcoin did it this year, it went up a lot more and it has a lot of Bitcoin on its balance sheet because as you can see there, almost all the money that happened in Bitcoin compared to other companies that you consider pro-Bitcoin, like a Tesla or a block.
All of this is something Choi likes and thinks his leverage strategy is a good way for people to get into Bitcoin.
And by the way, you mentioned the Bernstein team’s initial coverage here, they also gave you some Bitcoin targets.
You see this in the note, they revise our Bitcoin price expectation and now up to 200,000, they say the cycle is high in 2025 led, they told their clients by the unprecedented demand for Bitcoin through those brand new ETF S and supply of Bitcoin being built.
What’s interesting to me is that one of the reasons Jane is optimistic about the microstrategy is that he says investors are willing to pay a premium in light of the scarcity of Bitcoin corporate investment vehicles.
The story continues
Now there is this shortage of corporate investment vehicles, but speaking your opinion, there is now no shortage of investments in ETFs.
So the whole argument for a premium is because microstrategy is a rare, leveraged way to play Bitcoin or even a rare way to gain access to Bitcoin without purchasing it directly.
That faded a little bit, a little bit of success.
Yes.
So we’ll see if that continues.
This premium continues to increase.