Bitcoin News Update: MicroStrategy's Optimism on Bitcoin Faces Skepticism as Shares Fall by 35%
- MicroStrategy's Saylor dismissed Bitcoin sell rumors, reaffirming aggressive accumulation amid crypto volatility. - Company's latest $835M purchase added 8,178 BTC, boosting total holdings to 649,870 coins valued at $61.3B. - Saylor defended financial strategy, claiming 80% BTC price drop would still leave balance sheet "overcollateralized." - Stock fell 35% YTD despite bullish stance, as critics question equity dilution and dividend sustainability. - Long-term vision includes $1T Bitcoin balance sheet f
Michael Saylor, who serves as executive chairman at MicroStrategy (MSTR), has refuted speculation that the company is offloading its
MicroStrategy’s most recent acquisition—8,178 BTC for $835.6 million—stands as its largest since July, according to a filing dated Nov. 17. This purchase increases the company’s total Bitcoin holdings to 649,870 BTC, now worth about $61.3 billion at present market rates
The company’s market value has now dipped below the worth of its Bitcoin reserves, causing its market-to-net-asset value (mNAV) to fall under 1—a figure often cited as a sign of undervaluation. As of Nov. 14, MicroStrategy’s market capitalization was $59.92 billion, compared to the $61.3 billion value of its BTC holdings
MicroStrategy funds its strategy through convertible bonds and preferred shares, with recent Euro-denominated preferred stock sales bringing in $715 million. Since 2020, the company has raised $8.2 billion via convertible debt, using the capital to grow its Bitcoin reserves. Saylor contended that even if Bitcoin’s price were to drop by 80%, the company’s assets would still be "overcollateralized" compared to its debt
Saylor’s ambitions go beyond treasury management. In a wider discussion with Bitcoin Magazine, he described plans to build a $1 trillion Bitcoin balance sheet, aiming to use long-term appreciation to launch Bitcoin-backed lending products with yields higher than those in traditional finance. This would involve developing over-collateralized offerings, such as savings and insurance products, all denominated in Bitcoin
Despite Saylor’s optimistic outlook, MicroStrategy’s shares have dropped nearly 35% since the start of the year, trading at about $195 as of Nov. 17. Critics claim that the company’s dependence on issuing new shares to finance purchases has eroded shareholder value, while regulatory uncertainty and market downturns have dampened investor sentiment
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