NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

'MSTR Is Bitcoin Treasury Company': Michael Saylor Unveils Key MicroStrategy Plans

Published 11/07/2024, 09:57 PM
Updated 11/08/2024, 01:45 AM
\'MSTR Is Bitcoin Treasury Company\': Michael Saylor Unveils Key MicroStrategy Plans
MSTR
-
BTC/USD
-

U.Today - Michael Saylor, an American businessman, CEO of software giant MicroStrategy and a well-known Bitcoin supporter, released a new post on the topic of the main cryptocurrency.

Known for his viral posts on Bitcoin, Saylor revealed today that MicroStrategy is not just a software maker but a real Bitcoin treasury company backed by BTC reserves. The entrepreneur proved his thesis with an argument in the form of a diagram that details the logic behind MicroStrategy's Bitcoin strategy.

As you can see, the essence of the scheme is that MicroStrategy, as a Bitcoin treasury, buys BTC on its balance sheet and, with these reserves, issues various securities, both leveraged and common. The securities include MSTR Options, MSTR ETFs, Spot Bitcoin ETFs and MSTR Convertible Shares, as well as MSTR Dividend and MSTR Fixed.

According to the footnote, the latter two instruments do not yet exist, and it is not yet possible to describe exactly what they entail. However, it is clear that the company has plans to share its profits, which is confirmed by the chart.

MicroStrategy, Bitcoin and Michael Saylor

MicroStrategy's Bitcoin reserves currently stand at 252,220 BTC, which at the current price of around $75,000 per cryptocurrency is worth over $18.91 billion. More than half of that is unrealized profit, while the average purchase price of a company's Bitcoin is approximately $39,266.

Undoubtedly, MicroStrategy's case will go down in history as a company that literally rebuilt itself from nothing to become not only a major global software provider but also the first Bitcoin treasury company, as Michael Saylor described it.

This content was originally published on U.Today

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.