Bitcoin (BTC) bull Michael Saylor, who is co-founder and Chairman of MicroStrategy, has expressed a desire to enhance “intelligent leverage” for the company’s shareholders as it continues its strategy of investing heavily 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 approximately $4 billion effectively acting as equity due to their favorable trading conditions.
He noted, “They are trading with a delta of approximately 100%, looking like equity,” indicating a strong correlation between the convertible bonds and the company’s stock performance.
MicroStrategy has emerged as a significant player in the cryptocurrency landscape this year, actively pursuing a bold plan to raise $42 billion exclusively for the acquisition and retention of Bitcoin.
The company’s shares have surged nearly 500% in 2024, significantly outpacing Bitcoin’s own 150% rise during the same period, attributed in part 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 have not 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 seeking convertible arbitrage opportunities, a strategy 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 year, further bolstering its financing capabilities.
Despite concerns about the viability of its investment approach, MicroStrategy’s market capitalization has soared past $90 billion, leading to its inclusion in the Nasdaq 100 Index at the end of trading on Friday.
This milestone could trigger over $2 billion in share purchases from funds that track the tech benchmark index, according to estimates from Bloomberg Intelligence.
Saylor Open To Crypto Advisory Role
In a related note, Saylor revealed during 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 would 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, as the first-ever “White House AI & Crypto Czar.”
As previously reported by Bitcoinist, this role is designed to oversee the development of government 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 be tasked with creating a legal framework to provide the clarity the crypto industry has long sought, enabling it to flourish within the United States. Trump remarked, “He will work on a legal framework so the crypto industry gets the clarity it has been asking for and can thrive in the US.”
Featured image from DALL-E, chart from TradingView.com
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