Bitcoin (BTC) bull Michael Saylor, who’s co-founder and Chairman of MicroStrategy, has expressed a desire to reinforce “intelligent leverage” for the corporate’s shareholders because it continues its strategy of investing heavily available in the market’s leading crypto.
MicroStrategy’s Shares Soar 500% In 2024
In a recent interview on Bloomberg Television, Saylor highlighted that MicroStrategy holds $7.2 billion in convertible securities, with roughly $4 billion effectively acting as equity on account of their favorable trading conditions.
He noted, “They’re trading with a delta of roughly 100%, looking like equity,” indicating a powerful correlation between the convertible bonds and the corporate’s stock performance.
MicroStrategy has emerged as a major player within the cryptocurrency landscape this 12 months, actively pursuing a daring plan to lift $42 billion exclusively for the acquisition and retention of Bitcoin.
The corporate’s shares have surged nearly 500% in 2024, significantly outpacing Bitcoin’s own 150% rise throughout the same period, attributed partly to the firm’s routine announcements of multi-billion-dollar Bitcoin purchases, which have taken place every Monday for the past six weeks.
Such activities haven’t only driven up MicroStrategy’s stock price but have also raised questions regarding the long-term sustainability of this aggressive investment strategy.
The firm’s fixed-income securities have attracted attention from hedge funds in search of convertible arbitrage opportunities, a technique that involves buying the bonds while short-selling the underlying shares. This demand has facilitated MicroStrategy’s issuance of $6.2 billion in convertibles this 12 months, further bolstering its financing capabilities.
Despite concerns concerning the viability of its investment approach, MicroStrategy’s market capitalization has soared past $90 billion, resulting in its inclusion within the Nasdaq 100 Index at the top of trading on Friday.
This milestone could trigger over $2 billion in share purchases from funds that track the tech benchmark index, in keeping with estimates from Bloomberg Intelligence.
Saylor Open To Crypto Advisory Role
In a related note, Saylor revealed throughout the interview that he has been actively engaging with members of President-elect Donald Trump’s administration, signaling his willingness to contribute to discussions on constructive digital asset policies.
Saylor stated that he can be open to serving on an advisory council for digital assets if called upon amid Trump’s recent appointment of David Sacks, a former PayPal executive, because the first-ever “White House AI & Crypto Czar.”
As previously reported by Bitcoinist, this role is designed to oversee the event of presidency policies concerning artificial intelligence and crypto, a move that aligns with Trump’s campaign promise to reform US crypto regulations and foster an environment conducive to industry growth.
Sacks will likely be tasked with making a legal framework to supply the clarity the crypto industry has long sought, enabling it to flourish inside the US. Trump remarked, “He’ll work on a legal framework so the crypto industry gets the clarity it has been asking for and might thrive within the US.”
Featured image from DALL-E, chart from TradingView.com