Long

Bitcoin

MSTR

MicroStrategy’s Bitcoin plan has paid off, with the company currently profiting $16 billion as Bitcoin rises above $100,000.&nbsp;
The average value of 1 bitcoin with MicroStrategy rises to $58,263. The company purchased 402,100 bitcoins with the help of tens of billions of dollars in convertible stock offerings and debt.
The total value of Microstrategy bitcoin <a href="https://www.cryptotimes.io/2024/12/02/microstrategy-acquires-15400-bitcoins-with-share-sale-proceeds/" target="_blank" rel="noopener noreferrer nofollow">holdings was at approximately $23.4 billion</a>, but the current market value of its assets soars to $40.2 billion, with a profit of $16.8 billion.&nbsp;
Michael Saylor, the CEO of the company, claims that excluding future obligations, MicroStrategy’s current shareholders earned a 38.7% yield in November.
The calculation is based on a unique method that divides the company’s bitcoin holdings by its estimated total shares, ignoring future obligations, especially if MSTR stock price rises above certain debt conversion levels.
Investors are impressed by Michael Saylor’s strategy of using corporate debt to buy bitcoin while minimizing shareholder dilution. Some enthusiastic supporters even speculate that MicroStrategy’s value could surpass bitcoin itself, though such claims are highly speculative.
Members of the fan club “Irresponsibly Long MSTR” are far more bullish than Saylor, predicting $180,000 per bitcoin soon and $13 million by 2045. Some even speculate that MicroStrategy’s market cap could surpass Bitcoin itself.
Saylor’s personal fortune has surged to an estimated $9.2 billion, fueled by MicroStrategy’s success. The company’s market value stands at $86 billion, over double of the $38.2 billion worth of bitcoin it owns. Despite a 480% stock price jump this year, the premium over its bitcoin holdings has dropped compared to past highs.
The fact that MicroStrategy trades at a premium puzzles many financial commentators. Jason Calacanis sarcastically <a href="https://x.com/Jason/status/1863779677770334621" target="_blank" rel="noopener noreferrer nofollow">remarked</a>, “There is no downside!” However, others <a href="https://x.com/PikerCapital/status/1864160575292395708" target="_blank" rel="noopener noreferrer nofollow">mocked</a> it as “the best strategy humanity has ever created” and also <a href="https://x.com/hedge__x/status/1861442769887072375" target="_blank" rel="noopener noreferrer nofollow">warned</a> that “endless leverage never ends well.”
Still, the company plans to raise $42 billion more for future bitcoin buys and is eyeing inclusion in the NASDAQ 100 index, a move that could attract more passive investors.
Its decision on joining the NASDAQ 100 will be announced on December 13, and if approved, MicroStrategy will officially join the index on December 20. This could further boost the company’s visibility and stock performance.
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 Also Read: <a href="http://cryptotimes.io/2024/12/02/microstrategy-acquires-15400-bitcoins-with-share-sale-proceeds/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin Becomes World’s 10th Largest Currency by Market Cap</a>
</blockquote>

Bitcoin Hits $100K: MicroStrategy Gains $16B in Profit

The Crypto Times

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