More and more companies are adopting the MicroStrategy (MSTR) strategy to raise funds and purchase bitcoin (BTC) as a reserve asset. The objective of this financial engineering is to achieve greater performance in its treasuries.
These operations are financed through the issuance of debt bonds with an interest rate of 0% and long-term maturities.
Investors who buy them do not receive regular payments, but rather benefit if the issuing company’s shares rise and They then convert those bonds into stocks at a higher price.
In this way, this financial tool allows companies to obtain capital, from the issuance of debt, to invest that amount obtained in the currency created by Satoshi Nakamoto.
For their part, investors are compensated due to the revaluation potential of those shares.
As NoticiasVE has reported, MSTR raised $3 billion through the issuance of convertible bonds.
“MicroStrategy’s intention is to use the net proceeds from the sale of the bonds to acquire additional bitcoin and for general corporate purposes,” stated the company led by Michael Saylor.
In this way, the technology company implements the investment strategy known as “dollar cost average (DCA)”. It consists of periodic purchases of an asset, in this case BTC, with an upward possibility to average the cost of the acquisitions made over time, instead of trying to identify the bottom of the market to enter.
MicroStrategy sets the trend
In recent months, this trend has accelerated and more companies have adopted this financial engineering to obtain capital and purchase the digital asset.
For its part, Metaplanet, a Japanese investment firm, announced on November 19 a bond issue at an interest rate of only 0.36%. According to data from the bitcointreasuries explorer, 1,142 BTC valued at 274 million dollars.
Mara Holdings, a cryptocurrency mining company, reported that it completed an issuance of 1 billion in debt bonds, maturing on March 1, 2030. The approach is the same as that of MSTR, obtaining financing to buy more BTC.
In turn, Samara Asset Group, an asset management firm based in Malta and listed in Germany, announced in October its plan to issue bonds of up to €30 million, with a rate of 0%. “With bitcoin as our primary treasury reserve asset, we also improved our liquidity position with bond proceeds,” it was reported at the time in a press release.
Currently, there are 444,499 BTC distributed in the treasuries of more than 40 publicly traded companies.
About 88% is held by MSTR (331,300 BTC), Mara (27,562 BTC), Riot (10,928 BTC), Tesla (9,720 BTC) and the cryptocurrency exchange Coinbase (9,489 BTC).
For their part, the 10 most valuable companies in terms of market capitalization still do not have BTC among their treasuries. In the specific case of Microsoft, its board of directors will meet on December 10 to vote on whether to buy bitcoin as a reserve asset.
MicroStrategy Stock Rally
BTC has not stopped scoring all-time highs (ATH) since Donald Trump’s victory in the United States elections. In fact, the digital currency was less than $3,000 away from breaking the $100,000 barrier, as seen in the TradingView chart below.
The rally in the price of bitcoin has had a direct effect on MicroStrategy shares, which have reached all-time highs on the Nasdaq.
As NoticiasVE reported, before his first BTC purchase, MSTR shares were trading at $9. In recent days, its price climbed to $547, that is, an increase of more than 5,500% in just 4 years.
This growth allowed MicroStrategy to stand out by surpassing companies such as Apple, Microsoft and Amazon in trade volume, thus transforming its role within the technology market.