Nellius Irene
MicroStrategy’s Bitcoin investments have consolidated to over $10 billion in profit as Bitcoin rockets past $79,350, a new peak for the crypto asset.
MicroStrategy founder and Bitcoin advocate Michael Saylor recently celebrated Trump’s election win, which was quickly followed by the firm’s stock rise by almost 10% on Wednesday morning alone.
MicroStrategy earns $10 billion in gains from Bitcoin investments
MicroStrategy’s Bitcoin investment profit crossed $10 billion. This comes after Bitcoin’s price shot up to $77,000 on Friday and is now trading at $79,355. Bitcoin’s price has gained over 3% in the last 24 hours and 16% over the last seven days.
Many analysts have credited the impressive rally to Trump’s election victory. Michael Saylor, Executive Chairman of MicroStrategy, even referred to Trump as the “Bitcoin President” in one of his posts, congratulating him on his victory.
Looking ahead, MicroStrategy plans to expand its Bitcoin holdings further. The company had already intended to make additional Bitcoin purchases even before the recent elections and profit surge.
On October 30, 2024, the business intelligence company announced its plans to secure $42 billion in new funding for Bitcoin acquisitions over the next three years. The company aims to raise $21 billion through equity offerings and another $21 billion via fixed-income securities between 2025 and 2027, calling the funding initiative the “21/21 Plan.”
Saylor commented on the plan:
We are basically creating leverage by tapping into the convertible bond market. Over time, we’ll explore the fixed income market; we’ll look at issuing preferred shares – things that are, in essence, a swap.
~Michael Saylor
The company will purchase enough Bitcoin for the next three years to maintain 106-110 bitcoins per share. So far, the company has achieved 118 bitcoins per share in 2024.
Earlier in June, MicroStrategy also revealed that it increased its convertible note offering by 40% to $700 million and priced it to offer a 2.25% annual yield, aiming to add more Bitcoin to its reserves.
Michael Saylor tips Bitcoin to become a treasury asset
In a post on November 8, Michael Saylor projected that many countries would start using Bitcoin as a treasury reserve asset.
Nations will adopt #Bitcoin as a Treasury Reserve Asset.pic.twitter.com/bWOgCTpvJN
— Michael Saylor⚡️ (@saylor) November 8, 2024
However, with some countries like the US and Canada still taking a conservative approach toward crypto, Saylor’s predicted Bitcoin holding may be slower. Some analysts have even projected a long string of legal battles ahead to discuss Bitcoin’s reserve assessment.
On the other hand, European countries are starting to appreciate the new MiCA framework, which could give crypto assets legality and new holding statuses. Norway is one of the latest countries to welcome the framework; however, it is still considering whether additional regulations are necessary to promote financial stability.
