{"id":44458,"date":"2021-06-16T17:10:42","date_gmt":"2021-06-16T14:10:42","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=44458"},"modified":"2025-08-31T17:04:50","modified_gmt":"2025-08-31T14:04:50","slug":"media-bitcoin-fuels-rise-in-microstrategy-shares","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/media-bitcoin-fuels-rise-in-microstrategy-shares\/","title":{"rendered":"Media: Bitcoin fuels rise in MicroStrategy shares"},"content":{"rendered":"<p>After deciding to spend $1.5 billion to buy more bitcoins, MicroStrategy&#8217;s stock outpaced the market, rising 5.36%, according to reporter Colin Wu.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">After deciding to use $1.5 billion to buy more bitcoins, MicroStrategy&#8217;s stock price bucked the market and rose by 5.36%, Tesla&#8217;s stock price fell by 2.97%, Coinbase fell by 2.88%, and Square fell by 1.39%. <a href=\"https:\/\/t.co\/iy5Aj77zJs\">pic.twitter.com\/iy5Aj77zJs<\/a><\/p>\n<p>\u2014 Wu Blockchain (@WuBlockchain) <a href=\"https:\/\/twitter.com\/WuBlockchain\/status\/1405115560627564545?ref_src=twsrc%5Etfw\">June 16, 2021<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Tesla&#8217;s shares fell 2.97%, Coinbase fell 2.88%, and Jack Dorsey&#8217;s Square shares dropped 1.39%, the journalist noted.<\/p>\n<p>On June 14, the business analytics software provider <a href=\"https:\/\/u1f987.com\/en\/news\/microstrategy-raises-500-million-to-buy-bitcoin\">announced the issuance<\/a> of $500 million convertible senior notes with a coupon rate of 6.125%. The raised funds will be used to buy bitcoin, as will the capital from the announced <a href=\"https:\/\/u1f987.com\/en\/news\/microstrategy-to-raise-up-to-1-billion-via-stock-offering-to-fund-bitcoin-purchases\">additional stock offering of $1 billion<\/a>.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThe market value of MicroStrategy is $6.14 billion, and its 92,079 BTC are worth $3.69 billion. After continuing purchases, it will become a true bitcoin-<span data-descr=\"exchange-traded fund\" class=\"old_tooltip\">ETF<\/span>\u201d, Wu said.<\/p>\n<\/blockquote>\n<p>In a recent CNBC interview, MicroStrategy chief executive Michael Saylor did not actively refute such a comparison, and <a href=\"https:\/\/u1f987.com\/en\/news\/microstrategy-ceo-outlines-bitcoins-future-and-other-cryptocurrencies\">emphasised the advantages of the company&#8217;s shares<\/a> relative to ETFs.<\/p>\n<p>He also noted that the firm <a href=\"https:\/\/u1f987.com\/en\/news\/microstrategy-raises-more-than-1-billion-in-debt-financing-to-buy-bitcoin\">has historically tapped debt financing<\/a> to buy the leading cryptocurrency.<\/p>\n<p>However, in Colin Wu&#8217;s view, the interest rate on the latest tranche of bonds could be a problem for the company.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThe interest rate is 6.125% per year, or $30.625 million. As soon as MicroStrategy&#8217;s stock price falls, for example below $397.99, the pressure on the convertible bonds the firm will face will be enormous,\u201d Wu said.<\/p>\n<\/blockquote>\n<p>Earlier, in January 2021, Saylor said MicroStrategy <a href=\"https:\/\/u1f987.com\/en\/news\/microstrategy-to-explore-new-bitcoin-investment-opportunities\">would continue to deploy free cash flow into Bitcoin<\/a> and would consider new opportunities to invest in the leading cryptocurrency.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>After deciding to spend $1.5 billion to buy more bitcoins, MicroStrategy&#8217;s stock outpaced the market, rising 5.36%, according to reporter Colin Wu.<\/p>\n","protected":false},"author":1,"featured_media":44459,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1207,1138,1211],"class_list":["post-44458","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-microstrategy","tag-opinions","tag-stock-market"],"aioseo_notices":[],"amp_enabled":true,"views":"8","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/44458","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=44458"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/44458\/revisions"}],"predecessor-version":[{"id":44460,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/44458\/revisions\/44460"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/44459"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=44458"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=44458"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=44458"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}