1-Bitcoin with MicroStrategy
Bitcoin’s wild ride buddy MicroStrategy (MSTR) accomplished an important milestone. It surged 48 spots in two days to 85th in the top 100 publicly traded U.S. firms by market capitalization on Nov. 20.
MSTR’s market worth is $111 billion following a 12% stock price gain on Nov. 19 and 15% today. After a strong year, the shares closed at $482.
MicroStrategy’s shares has grown 2,739% after embracing Bitcoin as a treasury asset in 2020, exceeding NVIDIA’s 2,688% gain. This places MSTR among IT, banking, and energy heavyweights.
Over the last five years, MSTR beat NVDA, the world’s largest publicly traded company with a market worth over $3.6 trillion and a pioneer in artificial intelligence and gaming innovation.
How does this affect Bitcoin? Let’s see how MSTR and Bitcoin interact and perhaps change financial history.
MicroStrategy has gone from business software to corporate Bitcoin pioneer in recent years. It wants to hold Bitcoin as a long-term investment.
Since 2020, MicroStrategy has aggressively bought Bitcoin and used innovative financial methods to monitor it.
On Nov. 20, the company owned 331,200 BTC valued $16.5 billion, or $49,874 each.
During the bull run, the company acquired 51,780 BTC for $4.6 billion at $88,627 per between Nov. 11 and 17.
MSTR holds approximately $31 billion in Bitcoin, more than 10 times Marathon Digital (MARA), the second-largest public holder with 27,000 BTC, and significantly more than Tesla’s 11,500 BTC
Capital-raising helps MicroStrategy buy businesses. On Nov. 18, the company sold 13.6 million shares for $4.6 billion under a pre-existing contract, according to an SEC filing.
It still has $15.3 billion in shares for future issuance, giving it several Bitcoin investment choices.
The company still gambles. MicroStrategy issued a $1.75 billion convertible senior note with 0% interest until December 2029 two days earlier.
Investors may lend money to a company and convert it into shares at a pre-agreed price using convertible senior notes.
Due to high demand, MicroStrategy raised its convertible bond offering from $1.75 billion to $2.6 billion, including a $400 million greenshoe option, with a 55% conversion premium.
Allows underwriters to sell extra bonds beyond the first offering to fulfill demand. Bonds may be exchanged into MicroStrategy shares at 55% above stock.
Despite its stock surge, investors are willing to pay a premium to bet on the company’s long-term success using Bitcoin.
Saylor thinks Bitcoin as a genuine asset might stabilize stock values, particularly for companies that rely on quarterly revenues.
Microsoft’s enterprise value is 98.5% earnings and a small percentage physical assets. BTC may balance its strategy to safeguard shareholder capital, Saylor believes.
In late October, this ambitious approach sought $42 billion over three years—$21 billion from stock and $21 billion from debt. Buy more BTC to become the world’s top Bitcoin treasury.
2-Anti-crypto Gensler will quit SEC when Trump takes office
Gensler, who assumed office in April 2021, termed his tenure “the honor of a lifetime,” citing Treasury market central clearing and executive pay reform.
Biden-appointed Gensler slammed crypto regulation. He firmly opposed FIT21 once the House passed it.
His tough crypto stance includes securities law action against Coinbase, Binance, and Kraken.
Gensler is known for his distrust and hostility. Some say his strict policing and designation of crypto assets as securities have stifled growth and created legal uncertainty.
Bipartisan opposition to Gensler’s tenure focused on SEC digital asset management.
Crypto experts like former Acting Comptroller of the Currency Brian Brooks and SEC attorney Teresa Goody Guillén may replace him.
The SEC approved its first spot Bitcoin (BTC) exchange-traded products under Gensler after years of delays. Gensler was chastised for originally resisting these things, but a court decision prompted the change.
As Trump’s pro-crypto rhetoric grows, Gensler’s resignation may be key for crypto. Markets rose following the news.
3-FTX owes creditors by March 2025
FTX estate aims to pay creditors $16 billion by March 2025, a Nov. 21 press statement said. Initial payments begin 60 days after the January Chapter 11 reorganization.
The bankruptcy court will order the “Disputed Claims Reserve Amount” in December after claimants reach agreements with expert distribution agents next month.
CEO Ray III took over when Sam Bankman-Fried filed for Chapter 11 in late 2022. Ray III criticized Bankman-Fried’s surprising mishandling despite his long bankruptcy administration career.
Following months of collection and litigation, the FTX estate recovered $16 billion in cash and bitcoin. Investors and creditors of defunct exchanges should get most of their assets.
FTX’s founder denied criminal intent but was convicted of fraud. Bankman-Fried will challenge his 25-year sentence for judicial bias.
Inner circle members received lighter sentences or no jail time for testifying against SBF. Two years of supervised release for former co-founder Gary Wang. On Nov. 7, ex-Alameda co-CEO Caroline Ellison began her two-year tenure. Disgraced executives lost all Bankman-Fried assets and earnings.
References
https://crypto.news/btc-and-microstrategy-pushed-mstr-into-top-100-club
https://crypto.news/anti-crypto-gary-gensler-to-resign-from-sec-when-trump-takes-office
https://crypto.news/ftx-to-begin-creditor-repayments-by-march-2025