MicroStrategy (MSTR) has achieved a significant milestone by securing the 97th spot among the top 100 publicly traded companies in the United States.
This achievement follows a 12% surge in its stock price, which closed at $430 per share on Tuesday after surpassing the $400 mark earlier in the day.
Bitcoin’s All-Time High Boosts MicroStrategy Rally
The stock rally aligns with Bitcoin reaching a new all-time high, exceeding $94,000.
MicroStrategy Outpaces Bitcoin in 2024
In 2024, MicroStrategy has become a standout performer in the financial markets. Its stock has skyrocketed over 500% year-to-date, significantly outpacing Bitcoin’s 100% growth during the same period.
Over the past five years, the company’s stock has gained a staggering 2,739%, outperforming even NVIDIA (NVDA), which recorded a 2,688% increase during the same timeframe.
Bold Bitcoin Strategy Pays Off
MicroStrategy’s strategic decision to adopt Bitcoin as a treasury asset in August 2020 has delivered remarkable returns. Currently, the company holds 331,200 Bitcoin, valued at over $30 billion based on recent market prices.
On November 18, the company disclosed an additional $4.6 billion investment in Bitcoin and announced plans to raise $1.75 billion through convertible notes to further expand its cryptocurrency holdings.
Convertible Notes: A Key Funding Strategy
To fund its Bitcoin acquisitions, MicroStrategy plans to issue senior convertible notes with a 0% interest rate, set to mature in December 2029. These notes offer investors the option to convert debt into equity, a feature that has proven attractive in previous fundraising rounds.
For instance, the company raised $875 million in September 2024 and another round in June. The current offering could increase by $250 million to $2 billion if oversubscribed.
This approach enables MicroStrategy to secure low-interest or interest-free capital for its Bitcoin purchases. Investors benefit either from stock appreciation or by reclaiming their principal upon maturity.
Market Confidence Remains Strong
As of Wednesday’s pre-market trading, MicroStrategy’s stock rose by over 3%, reflecting continued investor confidence in the company’s Bitcoin-driven strategy.
Saylor Advocates Bitcoin Strategy to Microsoft
Michael Saylor, MicroStrategy’s executive chairman, plans to pitch the company’s Bitcoin investment strategy to Microsoft’s board of directors.
During a November 19 event hosted by VanEck, Saylor revealed that an activist prompted the proposal to Microsoft’s board. He agreed to deliver a concise three-minute presentation advocating for Bitcoin adoption.
Proposal to Integrate Bitcoin into Microsoft’s Strategy
Saylor’s presentation aligns with a December 10 shareholder vote to determine whether Microsoft should assess investing in Bitcoin. The proposal, initiated by the National Center for Public Policy Research (NCPPR), highlights MicroStrategy’s success with Bitcoin.
Saylor suggested that companies like Microsoft, Apple, and Google, which have substantial cash reserves, are missing an opportunity to enhance shareholder value by not holding Bitcoin.
He emphasized that integrating Bitcoin as a tangible asset could stabilize Microsoft’s stock, reduce risks, and strengthen shareholder value
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