MicroStrategy Takes $11 Billion Holiday Shopping Trip at Record Bitcoin Party – DL News
- Founder and President Michael Saylor is devouring Bitcoin.
- MicroStrategy has nearly doubled its Bitcoin holdings in six months.
- The software company is now part of the Nasdaq 100 index.
Michael Saylor, founder and president of MicroStrategy, is the most anticipated Christmas gift giver.
All he does is buy Bitcoin.
On Monday, his software company became publicly traded Announce It acquired more than 5,000 of the cryptocurrency.
This culminates a frenetic holiday shopping spree.
MicroStrategy has held about 113,000 bitcoins since mid-November, according to Securities and Exchange Commission filings.
At current prices, that’s about $11 billion.
Microstrategy’s buying spree from mid-November to December is its largest full-month buying spree on record.
The company’s Bitcoin treasury now stands at more than 444,000 bitcoins, or about $44 billion.
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Nasdaq 100
MicroStrategy’s large bitcoin purchases come as the company has rode a bullish stock to hit the market Nasdaq 100An index of the largest non-financial companies on the stock exchange.
Since January, its stock price has more than quintupled to now trade at around $360.
It’s a surprising breakthrough for a company Actual businesswhich sells data analysis software to large companies, has retreated to its endless purchases of Bitcoin.
Traders and Wall Street analysts see the company’s shares as a proxy, moving in tandem with the rise and fall of Bitcoin, for the cryptocurrency.
To fund its Bitcoin purchases, MicroStrategy uses surplus cash from its software business as well as equity and debt issues.
It’s a strategy that some analysts have criticized.
“Eventually, debt will significantly outperform equity, the trading premium will disappear, conversion rates on notes will feel unattainable and the price of stocks will collapse under the weight of senior debt, particularly during Bitcoin’s sharp decline,” Tatiana Kaufman, Most recently author of The Money Myth He said On X.
Crypto market drivers
- Bitcoin rose 5.1% over the past 24 hours to trade at $98,705.
- Ethereum price also rose by 3.7% to trade at $3,521.
What we read
Ben Weiss DL News“Dubai correspondent. Got a tip? Email him at bweiss@dlnews.com.
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2024-12-25 13:38:00
