No Bitcoin ETF? No problem, MicroStrategy is going to be one soon!
MicroStrategy (MSTR) announced today they are selling $400 million in convertible debt, which will be used to buy more Bitcoin.
In what has got to be the biggest news of the day, and probably the week, or maybe even the month for the matter MSTR decides to shock the world again.
They bought $425 million in bitcoin a couple months back, the price of bitcoin doubled shortly after.
Then the other day they went ahead and bought another $50 million in bitcoin stating this move was simply in according with their "treasury reserve policy"...
https://hive.blog/hive-167922/@jrcornel/microstrategy-buys-another-usd50-million-in-bitcoin
Which may mean they plan on simply buying bitcoin with any excess cash the company generates at basically any price.
Hugely bullish for the price of bitcoin as it will need big money coming in at higher prices to keep it moving north.
However, the news today even trumps all of that...
Today, CEO Michael Saylor announced that the company was selling $400 million in Convertible Senior Notes, the proceeds of which would be used to buy bitcoin.
Yes, you read that right, a publicly traded company is selling convertible debt in order to raise cash which they are then going to use to go and buy more bitcoin.
The announcement can be seen here btw:
I have never seen anything like this, heck I have never even heard of anything like this.
MSTR is in essence becoming a bitcoin holding company.
The SEC won't approve a bitcoin ETF, no problem, MSTR is becoming one!
MicroStrategy's stock has already been trading very much with the price of bitcoin, and that was before they decided to basically double their investment via a convertible debt offering...
Check out the correlations prior:
Bitcoin go up, MSTR go up, bitcoin dip, MSTR dip.
While I love this news on a ton of levels it does concern me a bit as well as they have taken things to another level regarding their involvement with bitcoin.
While I am sure technically they are allowed to do what they are doing, the SEC may not like the spirit of the actions and decide to step in to some degree.
If the company wants to use their cash reserves to buy bitcoin, no problem, but when they start raising capital to fund their bitcoin hoard, well that is something else all together.
I sure hope they have done their homework and this something they will be legally allowed to do, (and continue to do as I am sure this isn't the end of MSTR loading up on bitcoin).
Either way, this is one heck of a bold move by Michael Saylor and MSTR and he is quickly moving into legendary status with the likes of Elon Musk with moves like this, no matter how it eventually plays out.
Stay informed my friends.
-Doc
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I love that guy. He so interesting to listen to, as he discusses bitcoin and other things.
Yep, he really is.
I'm sure they did their homework. There're millions on the table.
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Doesn't mean the SEC won't investigate... Often times different lawyers interpret the same laws differently.
Obviously they have to have cool down period between buys, otherwise SEC might think they are buying for sole purpose of going bankrupt with no intent of paying back and instead funneling company assets to owners...
This move will further bridge the gap between stocks and bitcoin. I feel that the price of bitcoin at the moment will greatly shoot even higher at this point and it's also going to bring other investors investing in bitcoin
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Yep, I think so as well.
That's great..
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I see this as a very positive thing because if a large company like this is buying bitcoin at any cost this will motivate people to do so as they follow those who see security in an asset.
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well, other companies just write out debt to buy back shares or pay dividends, this seems like something more productive