tl;dr
MicroStrategy (MSTR) is pioneering bitcoin capital markets by raising $4 billion of convertible debt to buy bitcoin, a move unmatched by any other company, according to a research report by broker Bernstein. The firm is noted for developing institutional demand for bitcoin-linked convertibles, with ...
MicroStrategy has raised $4 billion of convertible debt to buy bitcoin, paving the way for a unique institutional demand for bitcoin-linked convertibles. The company's long-term strategy aims to capitalize on potential bitcoin upside while managing liquidation risk, a move unprecedented in the corporate world. With a current holding of 214,400 bitcoins worth around $14.5 billion, MicroStrategy has demonstrated a steadfast commitment to bitcoin as a reserve asset since 2020.
Unlike any other corporate entity, MicroStrategy has actively developed demand for bitcoin-linked convertibles, allowing it to attract substantial capital for its bitcoin investment. Analysts note that this approach, which includes a combination of equity and debt, enables the company to leverage potential bitcoin gains while limiting liquidation risk.
MicroStrategy's resolute stance is evident in its decision not to sell any bitcoin since initiating its investment in 2020. The company's willingness to raise further capital to augment its bitcoin holdings underscores its enduring confidence in the cryptocurrency's long-term value. Reflecting this conviction, Bernstein has assigned an outperform rating on MicroStrategy stock, setting a price target of $2,890.
The company's pioneering initiative in bitcoin capital markets represents a standout example of corporate innovation in the realm of cryptocurrency. As MicroStrategy continues to push the boundaries of traditional investment strategies, the evolving landscape of institutional bitcoin investments is poised for further transformation.
More about ZEEKR Intelligent Technology Holding Limited
ZEEKR Intelligent Technology Holding Limited, an investment holding company, engages in the research and development, production, commercialization, and sale of electric vehicles and batteries.
Industry: Technology
Sector: General
Support Levels: None
Resistance Levels: None
RSI: 0
Moving Averages: 0
Bollinger Bands: 0
Breakouts: None
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More about MicroStrategy Incorporated
Company: MicroStrategy Incorporated
Business Profile: MicroStrategy Incorporated provides global business analysis software and services. The company is headquartered in Tysons Corner, Virginia.
Sector: Technology
Industry: Services-Prepackaged Software
Market Cap: $26,526,992,000
Dividend Yield: None
EPS: -10.62
P/E Ratio: 32.62
ROE: -0.174
Revenue: $489,592,000
Employees: 1945.79
Volatility: -0.775
Beta: -0.055