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Brace For Impact: MicroStrategy Is Planning Another $500 Million Bitcoin Purchase

American business intelligence and software development company, MicroStrategy has unveiled new plans to acquire an additional Bitcoin, further bolstering its already substantial BTC holdings.

MicroStrategy Mega Bitcoin Purchase In The Works

In a recent press release published on MicroStrategy’s official website, the software development company announced plans to raise $500 million in convertible debt offerings to purchase more Bitcoin. Just a few days ago the company had sold approximately $800 million in convertible debt offerings, using the proceeds of the sale to acquire about 12,000 BTC valued at about $821.7 million at the time. 

Quite frankly, MicroStrategy seems to be on a full-blown Bitcoin acquisition spree, potentially attributed to the cryptocurrency’s massive bullish rallies recently and its surge to new all-time highs. As of March 11, 2024, the business intelligence firm possesses a total of 205,000 BTC, worth over $15 billion based on CoinMarketCap’s Bitcoin price of $73,411, at the time of writing.  

With its latest purchase of 12,000 BTC, MicroStrategy has finally surpassed the Bitcoin holdings of BlackRock’s Spot Bitcoin Exchange Traded Fund (ETF). Additionally, the software development company has secured the top position as the leading public company with the largest Bitcoin holdings, surpassing the holdings of both Tesla and Coinbase.

As of March 2024, MicroStrategy’s market capitalization has surged to $29.96 billion, reflecting an increase of 10.85% in the last 24 hours. The company is also presently ranked as the world’s 642nd most valuable company by market capitalization. 

MicroStrategy Sets Sights On Convertible Senior Notes Offerings

Since the start of the year, MicroStrategy has purchased nearly 16,000 BTC. This time around the company has chosen to raise capital through convertible senior notes, marking a shift from the previous year when most of its funds for acquiring BTC were generated from equity. 

According to Market Watch’s report, the business intelligence firm’s stock value has also been on the rise recently, with MSTR prices witnessing an impressive 145% increase in a month. 

As stated in its press release, the company intends to sell convertible senior notes to qualified institutional buyers. MicroStrategy has revealed plans to grant early purchasers of the notes an option to buy up to an additional $75 million worth of the notes within 13 days after the initial issuance. 

The software development firm has disclosed that the notes will remain unsecured, with interests payable semi-annually starting in September 2024. Additionally, MicroStrategy will have the right to redeem the notes from March 2028 or holders can request for the company to make a repurchase, with conversion terms determined at the offering’s prices.

The proceeds and excess funds generated from its upcoming $500 million convertible senior notes sale will be used to expand MicroStrategy’s Bitcoin holdings and for general corporate purposes. 

Bitcoin price chart from Tradingview.com

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Bitcoin Whales Go On Buying Spree As Price Dips, Here’s How Much They Bought

A recent development shows that Bitcoin whales have refused to be deterred by the recent price action of the flagship cryptocurrency. Instead, they have chosen to see it as an opportunity to accumulate more BTC. This move could turn out to be really profitable based on a recent analysis by crypto analyst Ali Martinez. 

An Increase In Bitcoin Whales

Ali Martinez stated in an X (formerly Twitter) post that 46 new entities now hold 1,000 BTC or more, which represents a 3% increase in just two weeks. Data from BitInfoCharts further shows that there are now 1,898 wallet addresses holding this amount of Bitcoin or more. This is significant as it suggests that more people have become bullish on the crypto token despite the recent market correction. 

These whales no doubt have enough reason to be bullish on BTC, as Martinez’s recent Bitcoin analysis suggests that the tide could turn soon enough. The analyst highlighted in an X post how, historically, price corrections for Bitcoin have “consistently been followed by further upside gains” in bull markets. 

As such, he noted that dips like this might offer “strategic buying opportunities for those looking to capitalize on Bitcoin’s potential growth.”

Meanwhile, the Spot Bitcoin ETF issuers have helped contribute to the increase in this figure, considering they have had to accumulate BTC for their respective funds. Data from on-chain analytics firm Arkham Intelligence shows that the world’s asset manager, BlackRock, currently holds over 44,000 BTC for their Bitcoin ETF. 

Bitcoin price chart from Tradingview.com (BTC whales)

BTC Still Has More Bullish Momentum 

While many in the crypto community continue to speculate whether the bull market is back, there is reason to believe that BTC’s bullish momentum is not fading anytime soon. In his most recent X post, Ali shared how the next market peak could land around 2025 if Bitcoin is to mirror past bull runs. Going by this projection, Bitcoin is said to have 600 days of bullish momentum still ahead. 

In the meantime, Bitcoin bulls will have to overcome the selling pressure from Bitcoin whales like Grayscale. The asset manager had to offload a significant portion of its BTC holdings due to the amount of outflows it keeps recording from its Spot Bitcoin ETF. GBTC investors like FTX are reported to be taking profits, considering that the fund had traded at a significant discount to Bitcoin’s price before now.  

At the time of writing, Bitcoin is trading at around $39,000, up in the last 24 hours, according to data from CoinMarketCap. 

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Bitcoin Recovery: This Massive $500 Billion Investment Could Send Price Above $50,000

Previous speculation has resurfaced regarding one of the largest potential Bitcoin buy-ins in the history of cryptocurrency. According to crypto analyst Justin Verrengia, there are indications that Saudi Arabia and Qatar may be gearing up for an enormous Bitcoin purchase, with an official announcement anticipated in the coming week. 

Saudi Arabia, Qatar Rumored To Purchase 1 Million BTC

In a recent video published on X (formerly Twitter), Verrengia, the host of the popular crypto channel Crypto News Alert spoke on the recent rumors sparked by crypto analyst Mark Keiser regarding a potential large-scale Bitcoin purchase by Middle Eastern country Saudi Arabia and sovereign state Qatar. 

The crypto analyst disclosed that both governments are potentially considering purchasing about 1 million Bitcoins valued at around $500 billion. Verrengia compared the large-scale buy-in with the 1.1 million BTC held in the wallet address owned by pseudonymous Bitcoin creator Satoshi Nakamoto. He hinted that Saudi Arabia and Qatar may be planning to purchase this staggering sum of Bitcoin using their sovereign wealth funds. 

In his video, Verrengia showcased several X posts from Bitcoin maximalist, Mark Keiser, who has been spreading speculations about the possibility of a large-scale Bitcoin purchase by Saudi Arabia and Qatar since 2023. 

Keiser suggested in his posts that the potential 1 million BTC investment by these two governments could make asset management company BlackRock and crypto intelligence company Microstrategy “look like peanuts” in comparison. 

The crypto analyst also disclosed that Saudi Arabia may be expanding its interest toward digital currencies. This shift can be seen in the recent partnership between the largest oil company in Saudi Arabia, Saudi Aramco, and Japanese financial service, SBI Holdings. Verrengia has heralded this movement as “oil money entering Bitcoin.” 

Bitcoin price chart from Tradingview.com

Bitcoin Price Sees Potential Rise Above $50,000

In his video, Verrengia also shared a post by Keiser, who predicted a $100,000 god candle if Saudi Arabia and Qatar purchase the 1 million BTC. A god candle here suggests a unique price pattern where the price of Bitcoin shoots upward by 100%, pushing it to new all-time highs. 

Presently, the price of Bitcoin is trading around $38,966.81, reflecting a 9.01% decrease in the past seven days, according to CoinMarketCap. A purchase of 1 million BTC would represent a substantial chunk of the total BTC supply, effectively attracting the attention of institutional investors. This could potentially trigger a Fear of Missing Out (FOMO), driving demand for Bitcoin through the roof and sending Bitcoin’s price above $50,000. 

In 2023, the hype surrounding the approval of Spot Bitcoin ETFs pushed Bitcoin’s price to a record high above $49,000. A similar result to the coveted $50,000 price mark could be attained if Saudi Arabia and Qatar purchase the rumored 1 million BTC.

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Why This 70-Year-Old Billionaire Wants To Own Bitcoin

Billionaire investor Stanley Druckenmiller recently gave his two cents on Bitcoin, acknowledging the asset’s growth and popularity over the past 17 years. While speaking at an interview with billionaire Paul Tudor Jones, Druckenmiller compared Bitcoin to gold, noting its evolution into a recognizable brand and investment vehicle. 

Druckenmiller admits he doesn’t actually own any BTC as of the moment, but he’s been closely following it and thinks it could be an attractive investment.

Druckenmiller Sees Bitcoin And Gold As Stores of Value

Bitcoin has long been hailed by financial analysts as the ideal asset for hedging against inflation and storing value. Some have dubbed the cryptocurrency as the 21st century’s digital gold because of its low correlation with stocks, and Druckenmiller doesn’t disagree.

Stanley Druckenmiller is the founder and former chairman of Duquesne Capital, and as a 70-year-old billionaire investor, he has seen a lot of financial trends come and go over the decades. But recently, he’s become fascinated with BTC. 

In the interview with Paul Tudor Jones, Druckenmiller stated that BTC has been particularly popular as a reputable brand because of its appeal to younger investors. The billionaire made this note while comparing Bitcoin to gold, the age-long store of value.

“I’m 70 years old, I own gold. I was surprised that Bitcoin got going, but it’s clear that the young people look at it as a store of value because it’s a lot easier to do stuff with. And 17 years, to me, it’s a brand.” Druckenmiller said.

It would seem the billionaire hasn’t invested in Bitcoin yet mainly because of the lack of clear regulation in the crypto industry. Druckenmiller said that he had previously held BTC. However, he sold them in 2022 because of restrictive policies imposed by central banks.

“I like gold because it’s a 5,000-year-old brand, but the young people have all the money,” Druckenmiller said. “So, I like them both. I don’t own any Bitcoin to be frank, but I should.”

Druckenmiller’s History With BTC

This isn’t the first time Druckenmiller has made positive comments about the crypto industry. Back in an interview in 2021, he likened Bitcoin to gold. He also predicted then that Ethereum could flip Bitcoin as smart contracts on the Ethereum blockchain spiked in popularity. In 2022, he said people could turn to crypto as more people lose faith in central banks.

Investors like Druckenmiller and Jones have always praised Bitcoin, but others like Warren Buffet have been pessimistic. Buffet slammed BTC in a CNBC interview in April this year, calling it a “gambling token.”

On the other hand, Bitcoin has been named as the best-performing asset class this year, outperforming stocks, bonds, commodities, and REITs. BTC is trading at $34,195 at the time of writing and is looking to break above a resistance at $35,000.

Bitcoin price chart from Tradingview.com

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Bitcoin Adoption: Addresses Saw 2nd-Highest Rise In History This Weekend

On-chain data shows the Bitcoin network saw new addresses crop up at the second-highest rate in history during the past weekend.

Bitcoin New Addresses Metric Shot Up During This Past Weekend

According to data from the market intelligence platform IntoTheBlock, BTC has just observed its highest number of new addresses since 2017. The relevant metric here is the “new addresses,” which simply keeps track of the total number of new addresses appearing on the Bitcoin network every day.

Generally, new users coming into the network aren’t the only ones generating new addresses as existing holders of the asset may also create new addresses for better privacy of their transactions and other purposes like dividing funds into multiple wallets.

Regardless of this, a good chunk of the new addresses being created on any given day are indeed signs that new investors are coming into the market, so the indicator can provide us with hints about how the adoption of the cryptocurrency is coming along.

When this metric has a high value, it naturally means that a large number of addresses are coming online for the first time on the blockchain, which could suggest that new traffic is being attracted to the blockchain currently.

Now, here is a chart that shows the trend in the Bitcoin new addresses over the past year:

Bitcoin New Addresses

As displayed in the above graph, the metric’s value shot up during the weekend that has just passed by, suggesting a significant amount of address creation has occurred.

At the peak of this spike, the daily value of the metric had been about 719,000 addresses, which is the highest that the indicator has been since 2017. The spike in 2017 is an all-time high for the daily new addresses, which means that this latest value is the second-highest spike that the asset has ever seen.

This extraordinary influx of new addresses on the network would imply a large amount of investors have decided to enter into the market. Historically, adoption has been a constructive sign for the cryptocurrency, as a large user base provides for a more solid foundation for sustainable growth in the future.

Any positives arising from adoption, however, typically don’t appear in the short-term periods, as the effect only plays a role for the asset in the longer timespans.

BTC Price

Bitcoin has continued to struggle recently as the asset has been devoid of any sort of real volatility. At present, the asset’s price is floating around the $25,600 mark.

These recent prices may be what has pushed new users toward the network, as they may have found the current lows to be a viable entry point into the market.

However, as mentioned before, this adoption is unlikely to be of any help to the cryptocurrency right now, unless the users coming in are the likes of the whales.

Bitcoin Price Chart

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Billionaire Investor Wishes He Bought Bitcoin Early On, Here’s Why

As Bitcoin continues to enjoy more mass adoption, many have regretted their decision not to get in earlier on the flagship cryptocurrency. Co-founder of private investment firm The Carlyle Group David Rubenstein joins this long list of individuals as he wishes he had bought BTC early on. 

Bitcoin Is Here To Stay

Speaking on Bloomberg Television on August 8, Rubenstein said he wished he had bought Bitcoin when one BTC was worth $100. The statement stems from the fact that the billionaire believes BTC is here to stay, following “enormous interest” in the cryptocurrency.  

He explained that Bitcoin’s decentralization is key to this interest as people want a form of money that governments can’t control.

According to him:

There’s enormous interest around the world, and to be able to have something you can transfer without having the government knowing about it, and keep it private. You can say people shouldn’t do that, but that’s not going to stop people from doing it.

Bitcoin (BTC) price chart from Tradingview.com

BlackRock Is Key To All Of It

Rubenstein also noted that people who once mocked BTC and other cryptocurrencies might begin to have second thoughts following BlackRock’s application for a Spot Bitcoin exchange-traded fund (ETF).

“What’s happened is people made fun of bitcoin and other cryptocurrencies, but now the establishment, Larry Fink at BlackRock, is now saying they’re going to have an ETF if approved by the government in bitcoin,” Rubenstein told Bloomberg. “So you’re saying wait a second, the mighty BlackRock is willing to have an ETF in bitcoin, maybe bitcoin is going to be around for a while.”

The billionaire investor’s sentiments echo that of Galaxy Digital CEO Mike Novogratz, who mentioned, during an interview on Bloomberg TV with David Rubenstein, that BlackRock’s CEO Larry Fink’s change of heart was the “most important thing that happened this year in Bitcoin.”

“He [Larry Fink] got ‘orange-pilled. Larry was a nonbeliever. Now he says, ‘Hey, this is going to be a global currency.’ People around the world all trust it,” he said.

Larry, who had once referred to BTC as “an index of money laundering,” said in a July 5 interview with Fox Business that Bitcoin could revolutionize the financial industry as it could be used as a hedge against inflation instead of traditional gold. 

There is no denying the influence that BlackRock and its CEO Larry Fink could have on BTC adoption, especially among institutional investors. BlackRock is currently the largest asset manager with over $9.1 trillion in assets under management (AuM). 

With such a large clientele base, the market could see more individual investors, companies, governments, and foundations invest in Bitcoin through BlackRock (when their spot Bitcoin ETF gets approved by the SEC). 

Meanwhile, Larry Fink is a prominent figure on Wall Street and one who boasts tremendous influence in the financial world, and he will likely carry this influence into crypto.

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MicroStrategy’s Michael Saylor Says Spot ETF Approvals Have No Bearing On Bitcoin Strategy

MicroStrategy co-founder and former CEO Michael Saylor has stated that potential Spot Bitcoin ETF approvals will not influence the company’s “Bitcoin Strategy.”

MicroStrategy Has A Unique Bitcoin Offering

During a discussion with Bloomberg on August 2, Saylor stated that even if the SEC approves the spot Bitcoin ETF applications, it would not affect his company’s offerings. According to him, MicroStrategy’s Bitcoin offering offers a unique proposition that the spot Bitcoin ETFs cannot emulate. 

Saylor echoed similar sentiments during the earnings call on August 1 when he stated that MicroStrategy’s unique “Bitcoin operating strategy” will make it stand out even when spot Bitcoin ETFs arrive. 

The ex-CEO explained that, “We can tap into leverage because we’re an operating company, which an ETF couldn’t do so we view it as being beneficial to the entire ecosystem.”

However, he believes these spot ETFs are good for the crypto industry as they will welcome institutional investors who boast more than enough liquidity into the space.

Differentiating his company’s offering from spot ETFs, he stated:

We are a unique instrument, we are the sportscar whereas the spot ETF is going to be the supertanker. Spot ETFs will serve another set of customers in a synergistic fashion to grow the entire asset class.

MicroStrategy had filed an application to the SEC to sell up to $750 million in Class A common stock. Saylor also confirmed that his company would use the potential proceeds of this stock sale to “acquire Bitcoin.” 

Bitcoin (BTC) price chart from Tradingview.com (MicroStrategy)

MicroStrategy’s Chief Financial Officer, Andrew Kang, had also confirmed that the proceeds from the proposed sale will be used for “the purchase of Bitcoin as well as the repurchase or repayment of outstanding debt.”

Saylor’s Faith In Bitcoin Paying Off

Saylor’s MicroStrategy, which happens to be one of the largest holders of Bitcoin, started buying the cryptocurrency in 2020 as a hedge against inflation. The company’s purchases largely resulted from Saylor’s faith in the token as he continued to advocate for it despite the recent market conditions in the crypto market.

Saylor stepped down as the CEO a year ago just to focus on the company’s Bitcoin purchasing strategy. This strategy seems to be paying off as it provides an edge for the company over its competitors, with the MSTR stocks rising tremendously since MicroStrategy’s adoption of Bitcoin. 

As revealed by Saylor in a tweet, MicroStrategy’s stocks have risen by 254% since 2020 when it started buying Bitcoin, with this performance putting the company above some key assets and big tech stocks in terms of performance. 

Saylor is not relenting as he confirmed that the goal is to “accumulate as much Bitcoin as we can” when quizzed about how much more Bitcoin the company intends to add to their existing holdings of 152,800 BTC.

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Buying Pressure Incoming? MicroStrategy Files Notice With SEC To Sell $750 Million In Stocks

In a recent development, MicroStrategy, a US-based software firm, has announced intentions to raise about $750 million through stock sales. According to the platform, which is currently one of the biggest corporate holders of Bitcoin, proceeds realized from the sale will be used to purchase more Bitcoin.

More BTC For MicroStrategy?

In a filing with the United States Securities and Exchange Commission on August 1, MicroStrategy disclosed that it has entered into a sales contract with three companies, namely Canaccord Genuity, Cowen and Company, and Berenberg Capital, with respect to the sale of MicroStrategy’s class A common stocks. 

Since MicroStrategy is a publicly traded company, the sales are expected to be available to the general public and to take place on the stock market. The firm is guaranteed easy access to capital since its stock will be offered to every interested investor. 

According to MicroStrategy, the proceeds raised from the proposed sale would be applied to different corporate objectives, which according to MicroStrategy’s Chief Financial Officer Andrew Kang, shall include “.. the purchase of Bitcoin as well as the repurchase or repayment of outstanding debt.”

Bitcoin (BTC) price chart from Tradingview.com (MicroStrategy)

Bitcoin Price Reaction To The News

MicroStrategy is a firm founded by Micheal Saylor and one of the largest holders of Bitcoin. The firm presently holds 152,800 Bitcoin valued at $4.5 billion at the current market price. The firm purchased an additional 12,333 Bitcoin during the second quarter of the year and another 467 in July.

It is currently one of the most prominent champions of Bitcoin with a bold investment strategy to boost its Bitcoin holdings regardless of whether or not the market is trending. 

Speaking to Investors following the announcement, Chairman and founder of the firm Micheal Saylor noted that their objective “is to find ways to generate incremental Bitcoin for our shareholders and do that with either cash flow from the business or do it through intelligent accretive financings of equity or debt or other intelligent operations.” 

In reaction to the announcement, the price of Bitcoin rose to about 2%, increasing from $29,200 to $29,771 at the time of writing. Shareholders in the company also benefited following the ongoing Bitcoin rally, with shares increasing to nearly 200% since the beginning of the year.

According to data from Google Finance, MSTR shares have risen from $145.02 per share on January 3 to $434.98 at the time of publication. 

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El Salvador President Says Country Will Buy 1 Bitcoin A Day

Since the bitcoin price decline began, El Salvador and its president Nayib Bukele have basically been put under a microscope. The country’s bitcoin plan had seen it buy more than 2,300 BTC but the bear market had wiped a significant portion of the value from their holdings. Nevertheless, Bukele has not backed down on his stance that bitcoin would be good for the country’s future and said El Salvador will continue to buy bitcoin.

1 Bitcoin A Day

Despite more than $60 million in value being wiped off the El Salvador bitcoin holdings, Nayib Bukele says the country is going to continue buying BTC. In a recent tweet, the president explained that there is a new strategy for accumulating bitcoin for the country.

According to him, El Salvador is going to start buying 1 bitcoin a day. As for when this will begin, the president explained that it will go into effect on Friday, Nov. 18. There was no timeline for how long this will run for in the tweet.

Bukele received support from Tron founder Justin Sun who said that TRON DAO would also follow in El Salvador’s bitcoin and buy 1 BTC every day starting from Friday. 

At such rates, the buying spree would quickly increase El Salvador’s bitcoin holdings which currently sit at 2,381 BTC as of the time of this writing. The country has also completed one year of BTC being legal tender despite mixed reactions from residents toward this.

Bitcoin price chart from TradingView.com

BTC trending in the mid $16,000s | Source: BTCUSD on TradingView.com

El Salvador has been put in an unstable position following its decision to hold BTC as part of its treasury. The country which is already stressed with debt recently received an offer from China to buy off this debt, but Bukele explained that the country continues to tread carefully. “We are not going to sell to the first bidder,” he added.

As for where the country stores its Bitcoin, the president has dismissed rumors that it held its BTC on the now-bankrupt FTX exchange. This was confirmed by Binance CEO Changpeng Zhao who posted on Twitter that he had spoken to the president and that El Salvador has no business with FTX.

Presently, the value of El Salvador’s bitcoin is sitting at $41 million with an unrealized loss of more than $65 million. The country has not shown any indication that it plans to sell, and its holdings could cross 3,000 BTC if it continues its 1 BTC purchases until the next bull market. 

Featured image from Forbes, chart from TradingView.com

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Billionaire Tim Draper On What Will Trigger The Next Bitcoin Bull Market

Bitcoin has been on a bear path given its recent movements and it’s no secret that the digital asset is well out of the bull market. This has sparked speculations as to what will actually trigger another bull rally for the pioneer cryptocurrency. Billionaire Tim Draper who has always been vocal when it comes to his thoughts about the crypto market has weighed in on this and put forward what he believes will be the defining factor for the next bitcoin bull market.

Women Are The Key

It is no surprise that more women are moving into the market. Even though males still disproportionately dominate crypto investing, the number of women moving into the space has been on the rise, reaching as high as one in every three investors now being a woman. Nevertheless, there is still a long way to go when it comes to bringing more women into crypto and billionaire Tim Draper believes that they will drive the next bitcoin rally.

Related Reading | Bitcoin Dominance Remains High As Market Sell-Offs Settle

Draper bases this on the fact that women command an immense purchasing power and if they were to bring this power into the bitcoin market, it will trigger another rally for the digital asset. He is not very far off with this assessment given that he said that women control approximately 80% of retail spending.

BTC recovers above $30,000 | Source: BTCUSD on TradingView.com

Women, who only currently make up 30% of all crypto investors in the United States, are still yet to move into the market en masse compared to their male counterparts, who by comparison possess less retail purchasing power. The factors behind this disparity usually come down to the fact that males are said to be risk-takers compared to women. Hence, are more comfortable playing in a relatively new space with little to no regulation.

Driving Bitcoin To $250K

Draper’s analysis of more women moving into the market could mean that bitcoin will hit new all-time highs. He puts forward where he believes that the price of the digital asset may end up and that number came out to $250,000.

Related Reading | Bearish Indicator: Is Bitcoin Headed For Its Ninth Red Weekly Close?

However, the billionaire explains another factor that will drive the price to this point. Alongside more adoption from women, he cites adoption from merchants who save more money when they accept bitcoin compared to credit cards.

He notes that once the cryptocurrency becomes more widely accepted as a form of payment, it will drive more women to own bitcoin wallets and buy things with BTC. “Then you’re going to see a Bitcoin price that’ll just blow right through my $250,000 estimate,” the billionaire added.

Featured image from Blockchain Journal, chart from TradingView.com

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