After Bitcoin crossed $20,000 it became one of the most prominent cryptocurrencies in the digital asset market, the surge in prices has attracted millions of new individual investors and institutional investors.
In a recent development, MicroStrategy, a known Bitcoin holder, has intended to raise approximately $1.75 billion from senior convertible notes at zero percent to acquire more BTC.
In a statement dated November 18, 2024, MicroStrategy noted that it ” intends to use the net proceeds from this offering to acquire additional Bitcoins and for general corporate purposes.”
The zero percent convertible senior notes mean that the company will not have to pay regular interest to the bondholders. It is worth noting that if the company will use the entire fund to purchase Bitcoin it could buy another 19,065 BTC.
Following the recent purchase of BTC worth $4.6 billion on November 18, 2024 now MicroStrategy holds 331,200 Bitcoins. Since the beginning of this year, the company has brought 142,050 BTC, worth roughly $12 billion in terms of press time trading prices of Bitcoin.
The firm’s head Michael Saylor has been a prominent figure in the crypto market and always remains in the spotlight for his pro-crypto speech and price prediction of Bitcoin.
Why does the MSTR Stock Remain in the Spotlight?
Since the beginning of this year, the trading prices of MicroStrategy shares have surged significantly reaching new heights. At the time of writing, it was trading at $384.79 with a growth of 29 percent in the past seven days and 94. 76 percent in a month.
In the past few sessions, MSTR stock has outperformed surpassing 20, 50, 100, and 200 days EMA. Some leading finance experts and traders argue that the trading price of MicroStrategy is overvalued and might burst in the coming future.
MicroStrategy stock price has seen an unexpected pump, it registered a growth of 455 percent in the YTD frame and a massive spike of 650 percent in the 52-week time frame. It is worth noting that by the end of 2023, the market capitalization of the company was $10. 55 billion which over 647 percent reached $78.90 billion as of writing.
The growth of MicroStrategy is appreciable, as its market capitalization was $1.63 billion which reached very close to $80 billion, its roughly recorded growth is 1000 percent.
In Q2 2024, MSTR was projected to report an EPS of negative $0.09 but instead reported a deeper loss of negative $0.57 per share. Analysts now anticipate the company will report an EPS of negative $0.12 in Q3.
Similarly, the company’s revenue fell short of expectations, declining by 8.49%. The annual revenue estimate for MSTR in 2024 stands at $476.99 million, significantly lower than the $504.84 million reported in the previous year.
Numerous reports indicate that MSTR has reaped significant profits from Bitcoin, being one of the early adopters that acquired BTC at lower prices. At the time of publication, Bitcoin was trading at $67,094, reflecting a 5.21% increase over the past 30 days.
