Major

Bitcoin

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>MicroStrategy plans to acquire $42 billion of Bitcoin in the next three years.</li> 
 <li>Analysts suggest MicroStrategy’s stock could become a de-facto Bitcoin ETF.</li> 
</ul> 
<p> MicroStrategy, led by Michael Saylor, revealed plans to purchase $42 billion of <a href="https://coineagle.com/price/bitcoin/">Bitcoin</a> within the next three years. This announcement was made in anticipation of the 2028 halving cycle. </p> 
<p>According to Saylor, the firm aims to raise $42 billion of capital over the next 3 years, which will be composed of $21 billion of equity and $21 billion of fixed income securities. </p> 
<h2 id="microstrategy-s-bitcoin-acquisition">MicroStrategy’s Bitcoin Acquisition</h2> 
<p>As of October 2024, MicroStrategy possessed 252,220 BTC, bought for $9.9 billion. The company’s Bitcoin stash is currently valued at over $18.15 billion, indicating $8 billion in unrealized gains. </p> 
<p>However, the firm’s $42 billion Bitcoin acquisition plan will be partially executed through a $21 billion at-the-market stock issuance program. This has led some analysts to suggest that MicroStrategy’s stock could transform into a Bitcoin ETF. </p> 
<p>Quinn Thompson, founder of Lekker Capital, believes that the firm is essentially converting its stock into a de-facto ETF. This would enable the company to issue stocks in the secondary market to fund its Bitcoin acquisition, similar to how US spot Bitcoin ETFs operate. </p> 
<h2 id="microstrategy-s-performance">MicroStrategy’s Performance</h2> 
<p>MSTR holders appear to be the primary beneficiaries of the recent update. Since adopting the Bitcoin strategy in 2020, MSTR has been the best-performing S&amp;P stock. Despite the firm’s Q3 loss of $19.4 million, MSTR’s performance has outshone Bitcoin’s. </p> 
<p>On a year-to-date basis, MSTR was up by 250%, significantly more than Bitcoin’s 60% gains. In Q3, MSTR surged about 20%, while Bitcoin ended the quarter with less than 1% gains. </p> 
<p>From an investor’s perspective, holding MSTR seemed to provide better returns than holding Bitcoin. </p> 
<p>As of now, MSTR is valued at $247. Whether it will reach a new yearly high remains to be seen, especially considering Bitcoin’s tight consolidation above $72K. </p>

MicroStrategy’s Colossal $42B Bitcoin Move: A Major Triumph for MSTR?

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CoinEagle.com

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