MicroStrategy’s Michael Saylor Has $3B Rescue Plan as MSTR Stock Tanks 16%

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As a seasoned researcher with years of experience in the volatile world of cryptocurrencies and financial markets, I can’t help but be intrigued by MicroStrategy’s latest move to acquire another $3 billion worth of Bitcoin. Having closely followed Michael Saylor’s strategic moves, it’s clear that he is not afraid to take bold steps in the face of market uncertainty.

Michael Saylor, MicroStrategy’s Executive Chairman, declared that they had successfully sold $3 billion worth of senior convertible notes to acquire more Bitcoins. This announcement comes as Bitcoin reached a new record high price of $99,314 and increased by an additional 1.4%. After surging by 106% to reach $473 in November, MicroStrategy’s stock dropped by 16% on Thursday. However, the stock’s downward trend changed during after-hours trading due to anticipation of a $3 billion investment in the Bitcoin market.

MicroStrategy’s Michael Saylor To Buy $3 Billion In Bitcoin

Today, it was announced by Michael Saylor’s MicroStrategy that they have successfully closed the previously proposed issuance of zero-percent convertible notes maturing in 2029. This move is tied to their strategic plans for acquiring Bitcoin in the future.

As a researcher, I can share that MicroStrategy plans to utilize the funds gained from selling bonds (notes) to expand our Bitcoin holdings and cover various corporate expenses, as we’ve pointed out in our official statement.

This week, I learned that a Bitcoin holding company made a massive investment by purchasing 51,780 BTC for an astounding $4.6 billion. This move has increased their total Bitcoin reserves to a whopping 331,200 coins.

Analysts predict that Michael Saylor could swiftly invest another $3 billion into Bitcoin. If this happens, it might fuel a surge in Bitcoin’s price towards the anticipated $135,000 mark by the end of the year. Given Saylor’s reputation for buying Bitcoin regardless of cost, the announcement for his next significant Bitcoin purchase could be made at any moment.

Various multinational corporations like Metaplanet, Semler Scientific, and others have started following Michael Saylor’s Bitcoin approach by adding BTC to their financial records. Saylor has also reached out to tech titan Microsoft (NASDAQ: MSFT) regarding their potential Bitcoin purchases. Next month, in December, shareholders of Microsoft will vote on this issue.

MSTR Stock Is Wall Street’s Favourite

This week, the Microstrategy stock (MSTR) has swept through Wall Street, experiencing a significant increase in trading activity that surpasses others in the Bitcoin sector. Moreover, it has outperformed the most actively traded companies within the “Magnificent 7” group regarding trade volume.

Yesterday, as an analyst, I observed that the Bitcoin Industrial Complex, spearheaded by MicroStrategy (MSTR), recorded a staggering $70 billion trading volume, according to Bloomberg Senior ETF strategist Eric Balchunas. Notably, alongside the MSTR stock, the MicroStrategy-linked leveraged ETFs have been making waves on Wall Street, demonstrating a robust performance.

On a given day, ETFs linked to MicroStrategy’s performance contributed around $50 billion to the overall trading volume. Specifically, the 2x leveraged ETFs, namely the T-Rex 2X Long MSTR Daily Target ETF (MSTU) and Defiance’s 2X long ETF (MSTX), recorded $3 billion and $2 billion in trades within the first two hours. To put this into perspective, the combined volume of these two ETFs during that initial period was twice as high as Apple’s daily trading volume.

Yesterday saw BlackRock’s Bitcoin ETF (IBIT) record its second-highest daily trading volume of $5 billion. This influx brought total investments into spot Bitcoin ETFs to over $1 billion, with IBIT accounting for approximately $600 million. This week, the anticipated launch of Bitcoin ETF options has been a hot topic, and IBIT options have been particularly active in trading.

Peter Schiff Slams the Stock Rally

On Thursday, MicroStrategy’s (MSTR) stock closed the day with a 16.6% decrease, dropping below $400. However, following the announcement of the convertible notes, the stock price increased by 3% during the post-market trading period.

Yesterday saw a significant surge in MicroStrategy’s implied volatility, reaching approximately 200%. This suggests a potential daily price fluctuation of around 12.6%. After the decline, this volatility has continued to increase, now standing at 270%, which indicates a projected daily movement of about 16%. According to 10X Research, this was the reported finding.

As Bitcoin and MSTR moved in opposite directions on Thursday, Bitcoin critic Peter Schiff wrote:

Today’s surge in Bitcoin value and MicroStrategy’s (MSTR) move to sell additional $3 billion in convertible debt to purchase more Bitcoin suggests that MSTR may have been the major buyer of Bitcoin today. The game continues until MSTR exhausts its pool of lenders and investors willing to provide it with funds and buy its shares, which some perceive as overpriced.

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2024-11-22 10:10