The Bitcoin reserve strategy pioneer MicroStrategy (formerly MicroStrategy) raised 748 million dollars by issuing common stock MSTR, expanding its dollar reserves to 2.19 billion dollars. This fund will be used to pay preferred stock dividends over the next 32 months, while suspending Bitcoin acquisitions. Is this largest digital asset finance company preparing for a long cryptocurrency winter?
MicroStrategy recently announced the establishment of a dollar reserve to pay future dividends and interest, alleviating people's concerns. According to information from its official website, MicroStrategy currently needs to pay an annual dividend of 824 million dollars, and its dollar reserves are sufficient to cover dividends for 31.9 months. Additionally, the value of the Bitcoin held by the company is a total of 59.4 billion dollars, which is enough to cover dividends for 72.2 years. The company's mNAV (the ratio of the current stock price to the value of its Bitcoin holdings) is 1.09 times and has not fallen below 1 yet.
MicroStrategy announced yesterday that it raised $748 million through the issuance of common stock for MSTR, expanding its dollar reserves to $2.19 billion. The entire amount raised will be used for dollar reserves. The company also suspended Bitcoin purchases last week, prompting market speculation:
Is this largest digital asset financial company preparing for a prolonged cryptocurrency winter?
MicroStrategy holds 671,268 Bitcoins with a cost of $50.3 billion, currently valued at approximately $59.4 billion, with unrealized gains of about 18%.
MSTR's stock price fell slightly yesterday, closing at $164.32, down 45% year to date.
This article discusses MicroStrategy raising $700 million to expand dollar reserves without purchasing Bitcoin, preparing for the crypto winter? Originally appeared in Chain News ABMedia.
