Microstrategy Surpasses Nike and Dell in Market Cap, Plans to Buy More Bitcoin

The Virginia-based software company announced this week it plans to buy more Bitcoin, even as the digital asset reaches new all-time highs.

Software company Microstrategy (NASDAQ:MSTR) has become a点がproxy for cryptocurrency, thanks largely to its executives’ enthusiasm for Bitcoin.

This year, the company has outperformed the S&P 500 by a wide margin, largely due to its massive gains from Bitcoin.

In the last month alone, Microstrategy has surpassed dozens of other companies, including Nike and Dell and, as of Wednesday, it sat at number 88 on the list with a market cap well over $100 billion.

But now, Microstrategy is turning to institutional investors to help it continue buying Bitcoin.

As part of this strategy, Microstrategy announced on Wednesday that it would offer $1.75 billion of convertible senior notes — a debt security that can be converted into equity at a predetermined date— to qualified institutional buyers.

The pricing was later upsized to $2.6 billion, with the company stating that it would use the proceeds to “acquire additional bitcoin and for general corporate purposes.”

Together with the proceeds from its recent common stock offering, Microstrategy now has about $4.6 billion for further Bitcoin purchases.

Since 2020, the company has invested about $16.5 billion in Bitcoin, acquiring most its supply at just a fraction of its current value.

Now, Microstrategy is sitting on a massive gain of over 500%, as the average price it paid for Bitcoin works out to about $24,500.

At the time of the company’s initial $250 million investment, Bitcoin was trading at around $34,000.

Since then, the digital asset has rallied to new all-time highs, and closed above $94,000 on Wednesday for the first time ever.

This article was generated by Benzinga's automated content engine and reviewed by an editor.