MicroStrategy Inc. Chairman Michael Saylor makes a $593.3 million bet on Bitcoin
MicroStrategy Inc. chairman and co-founder Michael Saylor has made one of the biggest bets of his career, with the enterprise-software maker turned Bitcoin investment-fund proxy purchasing $593.3 million more of the largest cryptocurrency.
Biggest Bitcoin Purchase Yet
According to a filing made the Tysons Corner, Virginia-based firm, they bought 16,130 Bitcoin in November, raising their holdings to roughly $6.5 billion. This purchase marks the biggest one made the company since it bought 19,452 Bitcoin for just over $1 billion in February 2021.
Saylor’s Bitcoin Strategy
Saylor began buying Bitcoin in 2020 and has increased his purchases this year as the cryptocurrency has recovered from a year of losses caused rising rates and high-profile crypto implosions and bankruptcies. Saylor stepped down from the chief executive role a year ago, stating that he would focus on the Bitcoin aspect of the company’s now dual strategy.
MicroStrategy’s Performance
MicroStrategy’s shares have soared 250% this year, outperforming Bitcoin as it rallied more than 125% amid optimism that the US may soon approve an exchange-traded fund that invests directly in the cryptocurrency. This has helped to allay concerns that an ETF will diminish demand for the stock.
Market Expert’s Perspective
Matthew J. Maley, chief market strategist at Miller Tabak + Co. expressed his view on the matter, stating, “If/when we get a Bitcoin ETF, it will raise the interest in the asset class.” He added, “There shouldn’t be a lot of cannibalization.”
Agreement for Stock Offering
In addition to their Bitcoin purchases, MicroStrategy has entered into an agreement with Cowen and Company, Canaccord Genuity, and BTIG to offer up to $750 million of common stock. The company initially announced plans to raise the amount through share sales in August, stating that the proceeds would be used for purposes such as Bitcoin purchases, working capital, and the repurchase of debt.
With assistance from Tom Contiliano, MicroStrategy Inc. is making bold moves in the cryptocurrency market and continuing to solidify its position as a significant player in the digital asset space.
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