Key Points
- MicroStrategy’s shares increased by 24% as Bitcoin’s price exceeded $67,000, and the company is proposing a $600 million convertible note offering.
- The company’s Bitcoin portfolio is valued at over $13 billion, and it has been purchasing Bitcoin since 2020.
MicroStrategy, a business intelligence firm recognized for its substantial investment in Bitcoin, experienced a significant surge in its share price on Monday. This increase of 24% coincided with Bitcoin’s price surpassing the $67,000 mark.
Following the market’s close, the firm announced its intention to raise $600 million through a convertible note offering. The shares of MicroStrategy were trading at $1,334.01 at the end of the trading day, data from Yahoo Finance shows. However, the share price dropped by approximately $100 immediately after this announcement.
MicroStrategy’s Bitcoin Investment
The company’s Bitcoin portfolio, which is currently valued at over $13 billion, has been a significant factor in its recent financial performance. MicroStrategy started investing heavily in Bitcoin in 2020, and since then, the value of the company has seen a tenfold increase, with a market cap exceeding $22 billion.
As of February 26, the company’s total Bitcoin holdings stood at 193,000, following the purchase of an additional 3,000 Bitcoin, valued at $155 million at the time of the transaction. This followed a purchase of 850 Bitcoin for $37.2 million the previous month.
Leadership Transition
In 2022, Michael Saylor, the co-founder of MicroStrategy, transitioned from the role of CEO to Executive Chairman. The last time the company’s share prices reached the current level was in the year 2000. This was the same year when Saylor and two other executives settled allegations of overstating revenue and earnings figures with the Securities and Exchange Commission.
The announcement of the private offering was made on March 4, 2024, at 22:17 UTC.
