In a stunning display of the power of betting big on bitcoin, software firm MicroStrategy has surged into the ranks of the top 100 largest U.S. public companies. The Michael Saylor-led company now boasts a market capitalization approaching a staggering $100 billion, propelled by its massive cryptocurrency holdings and soaring share price.
Bitcoin Bet Pays Off Big
MicroStrategy’s bold bitcoin gambit, started in 2020, has paid off handsomely as the premiere cryptocurrency continues to shatter records. With BTC recently cresting $94,000 and reaching new all-time highs, the value of the company’s 331,200 bitcoin holdings has swelled to over $30 billion.
The company’s stock price tells an equally impressive tale, with MSTR shares skyrocketing over 500% year-to-date. Tuesday’s trading saw the stock surge another 12% as bitcoin’s record-breaking rally showed no signs of slowing down.
MicroStrategy’s market value has risen almost tenfold since it announced its first investment in the leading token in August 2020, making it one of the most closely watched public companies.
– According to a market analyst
Upsizing Debt for More Bitcoin
Not content to simply ride bitcoin’s coattails, MicroStrategy continues to aggressively invest in acquiring more of the coveted cryptocurrency. The firm made waves again this week, upsizing its latest convertible debt offering to $2.6 billion from an initial $1.75 billion.
This marks the sixth such offering from MicroStrategy, with maturities ranging from 2027 to 2032, as it uses low-interest debt to scoop up more bitcoin. CFO Andrew Kang explained the rationale in a recent interview:
We’ve demonstrated that we can execute well and raise bitcoin-backed financing on attractive terms during both market highs and lows. Demand for this offering reflects broad support for our bold capital allocation strategy.
– Andrew Kang, CFO of MicroStrategy
Saylor Sets Sights Higher
Never one to rest on his laurels, MicroStrategy CEO and bitcoin bull Michael Saylor remains exceptionally optimistic about the future prospects of both his company and its chosen cryptocurrency. He expressed his unwavering confidence in a recent tweet:
Bitcoin is a bank in cyberspace, run by incorruptible software, offering a global, affordable, simple, & secure savings account to billions of people that don’t have the option or desire to run their own hedge fund. Just as Amazon democratized retail, bitcoin democratizes finance.
– Michael Saylor, CEO of MicroStrategy
With bitcoin continuing its upward trajectory and more major institutional investors jumping on board, MicroStrategy’s wild ride may have only just begun. As Wall Street takes notice, this former sleepy software firm has transformed into a cryptocurrency powerhouse, leaving many to wonder just how high Saylor and company can fly.
One thing is certain: all eyes will remain firmly fixed on MicroStrategy as it navigates uncharted territory at the intersection of technology, finance, and the future of money itself. In the fast-evolving world of cryptocurrency, this pioneering public company has undeniably staked its claim as a force to be reckoned with, as well as a harbinger of the increasingly mainstream adoption of bitcoin and its brethren.
