Bitcoin (BTC) bull Michael Saylorwho is the co-founder and chairman of MicroStrategy, has expressed a desire to increase “intelligent leverage” for the company’s shareholders as it continues its strategy of investing heavily in market-leading cryptos.
Shares of Microstrategy rose 500% in 2024
Recently interview On Bloomberg Television, Saylor highlighted that MicroStrategy has $7.2 billion in convertible securities, with about $4 billion effectively serving as equity due to their favorable trading conditions.
“They’re trading at a delta of almost 100%, looking like equities,” he noted, indicating a strong correlation between convertible bonds and company stock performance.
MicroStrategy has emerged as a significant player in the cryptocurrency landscape this year, actively pursuing an audacious plan to raise $42 billion just for acquisition and retention. Bitcoin.
The company’s shares have risen nearly 500% in 2024, significantly outpacing bitcoin’s own 150% rise over the same period, as part of the firm’s routine announcements of multi-billion-dollar bitcoin purchases, which have spanned the past six months. have been held every Monday since week
Such activities have not only boosted MicroStrategy’s stock price but have also raised questions about the long-term sustainability of this aggressive investment strategy.
The firm’s fixed-income securities have drawn attention from hedge funds seeking opportunities for variable arbitrage, a strategy that involves buying bonds while short-selling the underlying shares. That demand has facilitated MicroStrategy’s convertible issuance of $6.2 billion this year, further strengthening its financial strength.
Despite concerns about the feasibility of Investment approachMicroStrategy’s market capitalization surpassed $90 billion, leading to its inclusion in the Nasdaq 100 index at the close of trading on Friday.
The milestone could trigger more than $2 billion in share buybacks from funds that track the tech benchmark index, Bloomberg Intelligence estimates.
Sailor Crypto is open for a consultant role
On a related note, Saylor revealed during the interview that he is actively engaging with members of President-elect Donald Trump’s administration, indicating his willingness to contribute to constructive discussions. Digital asset policies.
Saylor said he would be open to serving on an advisory council for digital assets if invited amid Trump’s recent appointment of former PayPal executive David Sachs as “White House AI and crypto czar” for the first time.
As before Reported By Bitcoinist, the role is designed to oversee the development of government policies regarding artificial intelligence and crypto, a move that comes in line with Trump’s campaign to reform US crypto regulations and promote an environment conducive to industry growth. Matches the promise.
The sacks will be tasked with creating a legal framework to provide the clarity long sought by the crypto industry, enabling it to thrive within the United States. Trump commented, “He will work on a legal framework so that the crypto industry gets the clarity it’s been asking for and can thrive in America.”
Featured image from DALL-E, chart from TradingView.com
