Bitcoins are being bought endlessly? MicroStrategy increases the position by 5.4 billion pounds, helping shareholders earn tens of millions every day.

MicroStrategy again increase the position 54 billion dollars to buy Bitcoin

The company with the most BTC holdings in the world is making a move again! According to CoinDesk, the U.S. listed company MicroStrategy continues its bold Cryptocurrency investment strategy, making another significant purchase of BTC on November 25th.

In the past week, MicroStrategy has spent $5.4 billion to purchase 55,500 BTC, with an average price of $97,862 per coin, bringing the total holdings to 386,700 BTC, worth nearly $38 billion, further consolidating its position as an enterprise-level Whale in the BTC space.

Image Source: MicroStrategy's official website. MicroStrategy again increased the position by purchasing Bitcoin for 5.4 billion U.S. dollars, with an average price of 97,862 U.S. dollars, bringing the total holding to 386,700 coins.

Although MicroStrategy announced another round of buy-buy-buy, BTC still fell below $93,000 earlier this morning, but this does not seem to shake MicroStrategy's investment confidence.

Since the launch of BTC investment strategy in 2020, MicroStrategy has become an important player in the Cryptocurrency market.

Since the beginning of this year, MicroStrategy's stock price has surged by 515%, attracting the attention of many investors. The company's market capitalization once exceeded $100 billion and entered the top 100 list of publicly traded companies in the United States for the first time.

MicroStrategy is currently awaiting the annual reshuffling results of the Nasdaq Composite Index on December 13, which may further enhance its market position.

Further reading: Stock price rises 100%! MicroStrategy's BTC strategy is very useful, is Market Cap expected to outperform Intel?

MicroStrategy founder: Shareholders can earn up to k ten thousand every day

MicroStrategy founder Michael Saylor is very confident in BTC strategy. He posted yesterday that the company's treasury business has brought shareholders a 59.3% return, which is a net gain of 112,215 BTC, equivalent to earning 314 BTC per day.

Selah further estimates that if BTC rises to $100,000, it means shareholders will be able to receive approximately $34.1 million in floating income per day.

Image source: saylor/X MicroStrategy founder: the company helps shareholders earn k tens of thousands every day

Behind this radical investment strategy is a firm belief in the long-term appreciation of BTC.

Celer believes that compared to traditional currencies and other investment vehicles, BTC offers better value preservation and appreciation potential. MicroStrategy recently completed a $3 billion zero-coupon convertible bond issuance, with a conversion price of approximately $672.40, further confirming the company's optimistic outlook for the future.

Is there a risk in zero-coupon convertible bonds of MicroStrategy?

Senior analyst Marcel Pechman pointed out that MicroStrategy's way of raising funds through zero-interest convertible bonds provides investors with an opportunity to indirectly participate in the BTC market, as reported by Cointelegraph.

Peichman explained that when investors buy these zero-coupon convertible bonds, they will not receive regular Interest. Instead, when the MicroStrategy stock price rises, they can convert the bonds into company stock at a premium price, representing a close connection between bondholders' returns, company stock prices, and the BTC value.

Source: Finance Institute Convertible Bond Basics

However, this strategy also has relatively high risks. If BTC suddenly drops significantly, the micro-strategy may face liquidity issues and be forced to sell BTC at unfavorable prices to fulfill its debt.

Currently, MicroStrategy's stock price is 3.3 times its book value of BTC holdings, representing investors' optimistic expectations for the future appreciation of BTC.

Peigeman pointed out that the weighted average debt repayment period of MicroStrategy exceeds five years, providing a certain debt repayment buffer period.

If BTC continues to rise, MicroStrategy still has the opportunity to buy back bonds to avoid dilution of shareholder equity and bring higher returns to investors.

However, if there is a dramatic Fluctuation in BTC, bondholders may give up the stock conversion due to poor stock performance, which will put MicroStrategy under additional financial pressure.

Peichman believes that MicroStrategy provides investors with a BTC leverage exposure tool, magnifying its volatility risk. Therefore, direct investment in BTC may have simpler exposure and relatively lower risk.

Further reading: Follow the trend of micro-strategy! How long can the frenzy of hoarding BTC in the US stock market last? Will it turn into a bubble?

'Bit Coin's crazy buying knows no limits? Micro Strategy increases the position by 5.4 billion pounds and helps shareholders make tens of millions every day.' This article was first published in the 'encryption city'.