[ad_1]
In the stock market, it’s a truism that investors shouldn’t put all their eggs in one basket, and asset diversification is crucial. However, there are some heretics who overturn this common sense. Some notable examples are: micro strategy (NASDAQ:MSTR) Michael Saylor, co-founder and chairman.
Mr. Saylor is known to be a very enthusiastic bull, and as such he has directed his company exclusively to buying, selling and holding stocks. Bitcoin (Cryptocurrency: BTC). These days, it’s a lucrative strategy. MicroStrategy shares rose 25% in trading this week, according to data compiled by S&P Global Market Intelligence.
Bitcoin believer
If you believe passionately in a single asset, it’s easy to develop a straightforward approach to business. For years now, MicroStrategy’s overarching goal has always been to buy more Bitcoin.
To this end, the company made a major purchase on Monday, shortly after closing an $800 million convertible bond offering. The convertible bonds will mature in 2030 (if not converted) and will be sold to an unspecified number of institutional investors.
The company took some time to accumulate more Bitcoin, acquiring 12,000 of the popular cryptocurrency at a price of about $72,000 each. A rough calculation of these numbers is $864 million, so it’s clear that much of that is due to the bill issue.
Breathless slowdown, MicroStrategy announced on Wednesday. another Flotation of convertible banknotes. These are scheduled to be issued in 2031 unless converted, and the size of this issuance is a relatively modest $500 million. To no one’s surprise, MicroStrategy said the funds would be used for additional Bitcoin purchases and “general corporate purposes.”
go for a drive together
The rest of the investment world has recently engaged in MicroStrategy-like quests to acquire as much Bitcoin as possible. Fueled by favorable economic development and the rapid popularity of Spot Bitcoin exchange traded funds (ETFs), this cryptocurrency recently set a new price record. It’s no wonder investors are bullish on MicroStrategy.
Should you invest $1,000 in MicroStrategy now?
Before purchasing MicroStrategy stock, consider the following:
of Motley Fool Stock Advisor Our analyst team has identified what they believe Best 10 stocks Things investors can buy right now…and MicroStrategy wasn’t among them. These 10 stocks have the potential to generate impressive returns over the next few years.
stock advisor We provide investors with an easy-to-understand blueprint for success, including guidance on portfolio construction, regular updates from analysts, and two new stocks every month.of stock advisor Since 2002, the service has more than tripled S&P 500 returns*.
See 10 stocks
*Stock Advisor returns as of March 11, 2024
Eric Volkman has a position in Bitcoin. The Motley Fool has a position in and recommends Bitcoin. The Motley Fool has a disclosure policy.
Why MicroStrategy Stock Soared 25% This Week Originally published by The Motley Fool
[ad_2]
Source link
