MicroStrategy (MSTR) has become a corporate bitcoin (BTC) vault, and now the software firm intends to sell up to $500 million in shares to fund additional bitcoin acquisitions. This move will increase MSTR’s stake in BTC, which currently stands at around $4 billion. The company believes that BTC is a superior store of value to fiat currencies, and it is seeking to increase its holdings even further.
MSTR’s share sale is a vote of confidence in BTC, and it is likely to add even more momentum to the already surging cryptocurrency market. With institutional investors increasingly turning to BTC, MSTR’s move could be a precursor to even more large-scale investments in digital assets.
About MicroStrategy (MSTR)
MicroStrategy (MSTR) is a leading worldwide provider of enterprise software platforms. The Company’s mission is to provide the most flexible, powerful, scalable, and user-friendly analytics and identity management platforms that enable organizations to make better decisions, execute faster and achieve more.
MicroStrategy’s enterprise software platforms are used by leading organizations worldwide, including 89 of the Fortune 100 companies, 18 of the Top 25 U.S. Federal Government Agencies, and more than 3,500 public-sector and commercial organizations around the world. The Company’s solutions are deployed in more than 15,000 customer organizations in over 85 countries.
Michael Saylor Is On A Mission To Turn MicroStrategy Into a Crypto Proxy
The timing of founder Michael Saylor’s purchase of bitcoin is significant because it’s the first indication that he’s serious about his plan to use MicroStrategy as a proxy for investing in cryptocurrency. Saylor has been outspoken about his belief in the potential of bitcoin, and his decision to invest such a large amount of money in the digital currency is a clear indication that he remains committed to his original vision.
It’s likely that he believes that now is the time to buy bitcoin while prices are still relatively low. With the current market conditions, Saylor’s bet on bitcoin could pay off handsomely in the years to come. He has used money from stock and bond offerings to purchase about 130,000 bitcoin, worth more than $2 billion since 2020.
MSTR’s Stock Is Now Tethered To The Price of Bitcoin
MicroStrategy’s stock has become increasingly tethered to the price of bitcoin in recent months, resulting in significant losses as the cryptocurrency’s value has plummeted. However, the shares surged on Friday as bitcoin prices rose sharply. The stock fell back slightly in after-hours trading following the announcement of a stock offering that will dilute the value of existing shares.
Despite the recent volatility, MicroStrategy remains committed to its bitcoin bet, and CEO Michael Saylor has said that he plans to continue to invest in the cryptocurrency. While the long-term viability of this strategy remains uncertain, it is clear that MicroStrategy’s stock will continue to be closely linked to the price of bitcoin in the months and years to come.