TechFlow news, on November 22, Michael Saylor posted on social platform X stating that MicroStrategy is backed by its Bitcoin-focused financial operations. MicroStrategy holds $35 billion worth of Bitcoin and uses its ATM product to sell volatility, reinvesting the proceeds into more Bitcoin. This strategy strips the risk, volatility, and performance of Bitcoin from fixed-income securities and transfers that performance directly to MSTR shareholders.
In an interview, Saylor revealed that two recent transactions validated the feasibility of this model: two weeks ago, the company raised $4.6 billion through its ATM program, generating approximately $3 billion in proceeds at a 70% discount to Bitcoin's market price; this week, it completed a $3 billion convertible bond offering, securing $2.4 billion in proceeds at an 80% Bitcoin discount. According to projections, these two transactions will generate $275 per share in earnings over the next decade.
Saylor stated that the company borrows capital at a 6% cost to invest in Bitcoin, and when Bitcoin appreciates by 60%, it captures 90% of the Bitcoin price spread as profit—this model will continue creating value for shareholders.
