MicroStrategy Executive Chairman Michael Saylor announced the successful completion of the $3 billion offering of its senior convertible notes to buy more Bitcoins. The announcement comes as Bitcoin price hits a fresh all-time high of $99,314 levels with another 1.4% gain. Following a 106% rally to an all-time high of $473 in November so far, the MSTR stock came crashing down by 16% on Thursday. But the stock trajectory reversed in after-hours on hopes of a $3 billion infusion into the BTC market.
MicroStrategy’s Michael Saylor To Buy $3 Billion In Bitcoin
Earlier today, Michael Saylor’s MicroStrategy announced that they completed the previously announced offering of 0% convertible notes due 2029. This comes as part of the company’s Bitcoin acquisition plans ahead.
“MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoin and for general corporate purposes,” the company noted.
Earlier this week, the Bitcoin holding firm announced the purchase of 51,780 BTC for a staggering $4.6 billion investment value. As a result, the company holds a total of 331,200 Bitcoins as part of its reserves.
Crypto market analysts speculate that Michael Saylor in no time would deploy this additional $3 billion cash into Bitcoin. If so this would trigger the BTC price rally further to $135,000 levels by the year-end. Considering that Saylor is known for buying BTC at any price, the announcement for the next mega-Bitcoin purchase can come anytime soon.
Several global corporations such as Metaplanet, Semler Scientific, and others have adopted Michael Saylor’s Bitcoin strategy, putting BTC on the company’s balance sheet. Saylor has also approached tech giant Microsoft (NASDAQ: MSFT) to help them with their Bitcoin acquisitions. Next month in December, Microsoft will be conducting a shareholder vote to decide on this matter.
MSTR Stock Is Wall Street’s Favourite
Microstrategy stock MSTR has stormed Wall Street this week with skyrocketing trading volume thereby leading the Bitcoin Industrial Complex. It has also left behind the most liquid firms of the “Magnificent 7” group in terms of trading volumes.
Led by MSTR, the Bitcoin Industrial Complex clocked $70 billion trading volume yesterday, reported Bloomberg Senior ETF strategist Eric Balchunas. Along with MSTR stock, the leveraged MicroStrategy ETFs have also delivered a strong show on Wall Street.
ETFs tied to MicroStrategy accounted for $50 billion of the day’s total volume, with the 2x leveraged MSTR ETFs – T-Rex 2X Long MSTR Daily Target ETF (MSTU) and Defiance’s 2X long ETF (MSTX) – seeing $3 billion and $2 billion in trades, respectively. Their combined $6 billion volume in the first two hours alone was double that of Apple (AAPL) for context.
BlackRock Bitcoin ETF (IBIT) posted $5 billion in trading volume, marking its second-highest day ever. the total inflows into spot Bitcoin ETFs yesterday crossed $1 billion with IBIT contributing more than $600 million. The Bitcoin ETF options launch this week remains in the limelight with IBIT options clocking strong trading volumes.
Peter Schiff Slams the Stock Rally
On Thursday, the MSTR stock ended the trading session 16.6% down slipping under $400. Following the announcement of the convertible notes, the stock price gained 3% in the aftermarket hours.
MicroStrategy’s implied volatility soared to 200% yesterday, signaling an anticipated daily price swing of 12.6%. Following the decline, implied volatility has further climbed to 270%, now indicating an expected daily move of 16%, reported 10X Research.
As Bitcoin and MSTR moved in opposite directions on Thursday, Bitcoin critic Peter Schiff wrote:
“Based on today’s rise in Bitcoin and the reversal in MSTR, which sold another $3 billion in convertible debt to buy more Bitcoin, MSTR was likely today’s big Bitcoin buyer. The game ends when MSTR runs out of suckers willing to lend it money and buy its overpriced shares”.
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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