Michael Saylor Buys More Bitcoin Amid Wirehouses' Interest; Coinbase Shares Ascend to IPO Price
Summary:
Michael Saylor has used $800 million from a convertible note offering to buy an additional 12,000 Bitcoin. Institutions managing notable assets plan to invest in Bitcoin ETFs by June, as proclaimed by Bitwise. Meanwhile, Coinbase's stock shares have surfaced above their IPO price for the first time in two years by 60%, following the sanction of spot BTC ETFs in the U.S. The company marked a strong fiscal fourth quarter, earning net revenue of $905 million and net income of $263 million.
Michael Saylor used the proceeds of a convertible note offering worth $800 million to purchase an additional 12,000 Bitcoin (BTC). The coming quarter could witness substantial inflow from major wirehouses, institutional consultants, and significant consultants into Bitcoin ETFs. Furthermore, Coinbase's stock shares have seen a 60% surge this year, rising above their IPO price for the first time in two years.
MicroStrategy, on March 6, disclosed plans to offer a new series of convertible notes as Bitcoin hit a record high. On March 8, the company concluded the private offering with an aggregate principal amount of $800 million. Michael Saylor, the company's founder and chairman, acknowledged on social media X that the net profits from the note offering and excess cash were employed to procure a further 12,000 Bitcoin, with an average cost of $68,477 per BTC.
Prior to this latest Bitcoin procurement, MicroStrategy had about 193,000 BTC, bought at an average value of $31,544. This investing strategy has been profitable, yielding a 112% return since initiation and a current balance of $12.9 billion. Saylor then added that MicroStrategy currently holds 205,000 BTC, purchased for $6.91 billion at an average price of $31,5000 per BTC.
In related news, Bitwise, the crypto-native asset manager, stated that entities managing "trillions of dollars in assets" poised to invest in spot Bitcoin exchange-traded funds (ETFs) by June's end. Bitwise's Chief Investment Officer Matt Hougan confirmed that the asset manager had started "serious due diligence" discussions with large corporations and institutional consultants who plan to increase their Bitcoin investments.
Significant player, Coinbase, (COIN) has had its stock soar back above $250, reaching their IPO price for the first time in two years, following the revival of the crypto market. Following a surge of as much as 11.5% on March 8, the stock was last seen trading around $255, exceeding its IPO price listing of $250. This is good news for the cryptocurrency exchange which faced a low point a mere two years ago with shares trading as low as $33. This momentum has been powered by increasing Bitcoin and crypto prices, thanks largely to the approval of spot BTC ETFs in the U.S.
Following an impactful fiscal fourth quarter, Coinbase reported a $263 million net income from $905 million in net revenue. All investments and trading moves come with associated risks, and readers should conduct their own thorough investigation before making any decisions. Reporters Geraint Price, Sam Bourgi, and Felix Ng contributed to this report.
Published At
3/11/2024 4:00:13 PM
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