MicroStrategy (formerly known as MicroStrategy), the pioneer of Bitcoin reserve strategies, raised $748 million through the issuance of common stock MSTR, expanding its dollar reserves to $2.19 billion. This money will be used to pay preferred stock dividends over the next 32 months, while Bitcoin acquisitions are suspended. Is this largest digital asset finance company preparing for a long cryptocurrency winter?
MicroStrategy recently announced the establishment of a US dollar reserve to pay future dividends and interest, alleviating concerns. According to its website , MicroStrategy currently pays $824 million in dividends annually, and its dollar reserves are sufficient to cover 31.9 months of dividends. Furthermore, the company currently holds Bitcoin worth $59.4 billion, enough to pay dividends for 72.2 years. The company's mNAV (current share price to the value of its Bitcoin holdings) is 1.09, still above 1.
MicroStrategy announced yesterday that it raised $748 million through the issuance of common stock (MSTR), increasing its dollar reserves to $2.19 billion. All of the funds raised will be used for dollar reserves. The company also suspended Bitcoin acquisitions last week, leading to market speculation.
Is this largest digital asset finance company preparing for a long cryptocurrency winter?
MicroStrategy holds 671,268 bitcoins at a cost of $50.3 billion, with a current market capitalization of approximately $59.4 billion, representing an unrealized gain of about 18%.
MSTR shares fell slightly yesterday, closing at $164.32, down 45% year-to-date.
This article, titled "Micro Strategy Raises $700 Million to Expand Dollar Reserves Without Buying Bitcoin, Preparing for a Crypto Winter?", first appeared on ABMedia, a ABMedia .
