New York, Wednesday, September 25, 2024-MicroStrategy’s financial profile could significantly strengthen as the company continues to expand its Bitcoin holdings and explore potential yield-generation strategies through lending, a report by Benchmark said. 1
Reports said that last week MicroStrategy (MSTR) purchased 7,420 Bitcoin for $458 million, bringing its total Bitcoin holdings to 252,220 BTC, valued at approximately $15.8 billion.
The firm has acquired over 25,000 Bitcoin in the last two months alone, solidifying its position as one of the largest corporate Bitcoin holders.
This latest acquisition was funded by an upsized $1.01 billion private offering of convertible senior notes due 2028, with a 0.625% coupon and a 40% conversion premium.
Benchmark said that the company’s stock could be worth $215 per share if it follows this strategy.
MicroStrategy’s core business is enterprise software, but its public market valuation is mainly from holding BTC.
MicroStrategy plans to use part of the proceeds to redeem $500 million of senior secured notes and the remaining funds to acquire additional Bitcoin and for general corporate purposes.
Benchmark, an investment bank and research firm, noted that MicroStrategy’s move to issue convertible notes for Bitcoin purchases could bolster its balance sheet and provide opportunities to generate yield by lending out its Bitcoin holdings.
As MicroStrategy continues its aggressive Bitcoin strategy, analysts suggest that the firm’s financial position may improve further as it explores innovative ways to leverage its extensive Bitcoin assets.
- MicroStrategy: https://www.benchmarkcompany.com/[↩]
