Saylor's Strategy Raises $2 Billion in Convertible Bond Sale
Michael Saylor's Strategy raised $2 billion from an issue of convertible debt after the Bitcoin treasury firm sweetened the terms for investors. It plans to use the proceeds for purposes including acquiring more of the digital token.
The company, which until recently was called MicroStrategy Inc., priced the zero-coupon convertible senior notes due in 2030 with a 35% conversion premium, according to a statement on Thursday. The premium is in reference to the volume-weighted average price of $321.05 each at which it traded over a stretch of Wednesday afternoon. It came in below the 40% to 50% range the company had marketed earlier, Bloomberg News has reported.
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CNN
38 minutes ago
- CNN
Should you invest in crypto now?
Much has changed in the crypto landscape over the past year and a half. And with it, so may more investors' minds about cryptocurrencies — especially bitcoin, the (very young) granddaddy of them all. Crucially, crypto has gained greater acceptance among regulators and large institutional investors as an asset class that is likely here to stay. The Securities and Exchange Commission now regulates spot bitcoin and ethereum exchange-traded funds. Coinbase, the crypto currency exchange, is now on the S&P 500. Stablecoin provider Circle just went public. The Trump administration, meanwhile, is very supportive of crypto, and the Labor Department just rescinded its 2022 guidance urging 401(k) fiduciaries to 'exercise extreme care' if they include a crypto investment option to plan participants. With bitcoin now trading above $100,000 and US lawmakers actively working on crypto regulations, it may be worth revisiting the question of whether you should have exposure in your portfolio. The answer will be highly personal, driven by your risk tolerance, time horizon and knowledge. Despite being a crypto advocate, Tyrone Ross, founder of financial planning firm 401 Financial, put it this way: 'We have a long way to go before you should be YOLO-ing your way into crypto.' When financial advisers have been asked over the past several years whether they would recommend that clients invest in bitcoin or other cryptocurrencies, many were reluctant because digital assets were not regulated, pricing was highly volatile and their use case and valuation was hard for both adviser and client to understand. Unlike stocks, which can be valued on the basis of tangible components such a company's goods and services, bitcoin is considered a store of value, and its price is driven by what others are willing to pay for it. That caution was understandable, said Ric Edelman, who founded Edelman Financial Engines and then created the Digital Assets Council of Financial Professionals, which provides certification courses in blockchain and digital assets for financial professionals and investors. But, at this point, Edelman believes that advisers who value diversification as a strategy in their clients' portfolio — eg, across asset classes, sectors, etc. — would be remiss not to recommend adding at least a small amount of digital asset exposure. 'They ought to be cautious. But being cautious doesn't mean abstinence,' he noted. 'We've seen bitcoin reach all-time highs and seen institutional investors engage for the first time.' Several years ago, when crypto's future was far less certain, Edelman had recommended a 1% asset allocation to crypto, an amount small enough that even if a crypto investment fell to zero it would not greatly harm the long-term trajectory of a person's portfolio. In March this year, using bitcoin as an example, he compared the performance of a balanced 60% stocks/40% bonds portfolio with an average annual return of 7% over a decade, to a portfolio where the equity portion is reduced to 59% in favor of a 1% investment in bitcoin. In the extreme, if bitcoin became worthless the average return would only drop to 6.9%. And, equally extreme, if the price rose to $1 million, the return would increase to 7.4%. If the equity portion were reduced to 57% with 3% put into bitcoin, the average return drops to 6.8% in the worthless scenario and jumps to 8.2% if bitcoin hits $1 million. If bitcoin exposure were upped to 5%, the downside return would be 6.7% and the upside return would be 9%. Despite bitcoin trading around $100,000 — a nosebleed level relative to where it had fallen during the so-called crypto winter of 2022 — Edelman believes that the price still has a lot of upward potential because the number of bitcoins is permanently limited and demand for it is increasing. For those who have yet to invest in crypto and would like to, 'the best place to begin is bitcoin,' Edelman said. 'It is by the far the largest digital asset — and it's the digital asset of choice for institutional investors.' And, he added, 'it's different than all other digital assets. It's a store of value and a transmittal (instrument). All the others are designed for specific commercial uses and it's far less certain as to which of the others will be successful.' But investing directly in bitcoin and storing it in your own wallet can be a complicated proposition unless you know what you're doing. 'Scams are a big issue in this space,' Ross said. A far safer route for the novice crypto investor, he and Edelman said, is through an SEC-regulated bitcoin ETF. Not everyone is as immediately bullish as Edelman. In a March note to clients, TIAA chief investment officer Niladri Mukherjee said, 'While broadening enthusiasm around crypto adoption and the bitcoin ETFs are an encouraging sign for the industry, from an investment perspective, its value drivers will take time to develop and to be well understood by market participants.' Given that the industry is still 'quite opaque and unregulated,' Mukherjee added that individuals should do their due diligence before investing. But even before you do that, gut check yourself. When asked who absolutely should not invest in crypto, Edelman was quick to reply: 'Those who cannot emotionally tolerate volatility. Because we know (cryptocurrencies are) highly volatile. You're likely to sell when prices are low.' That's especially the case if you decide to invest directly in a given coin. A good way to test your appetite for volatility is to consider how much you might spend on a nice meal at a favorite restaurant and invest that amount into crypto if it doesn't strain your household budget. Then just watch to see what happens over the next several months, Ross said. 'Track it, read about it, understand its ebbs and flows.' In other words, educate yourself about how things work before making any real commitment to it. Then if you think you're comfortable enough, you might invest small amounts monthly — again, nothing that would compromise you financially, he suggested. In terms of an overall allocation of your assets, Lazetta Rainey Braxton, founder of the financial planning firm The Real Wealth Coterie, said you want an amount that is small enough that it won't undermine the valuation of your portfolio if things go south. And, she added, '(stick) with players that are well known and respected and have the infrastructure in place to make sure that they are offering a solid investment and also the information associated with that.' Trent Porter, a certified financial planner and certified public accountant at Priority Financial Partners, is not a big fan of crypto even with all the developments in recent months easing investment in the space. 'My core advice remains unchanged: Crypto exposure should match an investor's personal risk tolerance and capacity, keeping the allocation small (no more than 5%) for most people. Regulatory risk might have eased, but market risk is still very real, and as we all know, the regulatory environment can change quickly.'
CNN
40 minutes ago
- CNN
Should you invest in crypto now?
Much has changed in the crypto landscape over the past year and a half. And with it, so may more investors' minds about cryptocurrencies — especially bitcoin, the (very young) granddaddy of them all. Crucially, crypto has gained greater acceptance among regulators and large institutional investors as an asset class that is likely here to stay. The Securities and Exchange Commission now regulates spot bitcoin and ethereum exchange-traded funds. Coinbase, the crypto currency exchange, is now on the S&P 500. Stablecoin provider Circle just went public. The Trump administration, meanwhile, is very supportive of crypto, and the Labor Department just rescinded its 2022 guidance urging 401(k) fiduciaries to 'exercise extreme care' if they include a crypto investment option to plan participants. With bitcoin now trading above $100,000 and US lawmakers actively working on crypto regulations, it may be worth revisiting the question of whether you should have exposure in your portfolio. The answer will be highly personal, driven by your risk tolerance, time horizon and knowledge. Despite being a crypto advocate, Tyrone Ross, founder of financial planning firm 401 Financial, put it this way: 'We have a long way to go before you should be YOLO-ing your way into crypto.' When financial advisers have been asked over the past several years whether they would recommend that clients invest in bitcoin or other cryptocurrencies, many were reluctant because digital assets were not regulated, pricing was highly volatile and their use case and valuation was hard for both adviser and client to understand. Unlike stocks, which can be valued on the basis of tangible components such a company's goods and services, bitcoin is considered a store of value, and its price is driven by what others are willing to pay for it. That caution was understandable, said Ric Edelman, who founded Edelman Financial Engines and then created the Digital Assets Council of Financial Professionals, which provides certification courses in blockchain and digital assets for financial professionals and investors. But, at this point, Edelman believes that advisers who value diversification as a strategy in their clients' portfolio — eg, across asset classes, sectors, etc. — would be remiss not to recommend adding at least a small amount of digital asset exposure. 'They ought to be cautious. But being cautious doesn't mean abstinence,' he noted. 'We've seen bitcoin reach all-time highs and seen institutional investors engage for the first time.' Several years ago, when crypto's future was far less certain, Edelman had recommended a 1% asset allocation to crypto, an amount small enough that even if a crypto investment fell to zero it would not greatly harm the long-term trajectory of a person's portfolio. In March this year, using bitcoin as an example, he compared the performance of a balanced 60% stocks/40% bonds portfolio with an average annual return of 7% over a decade, to a portfolio where the equity portion is reduced to 59% in favor of a 1% investment in bitcoin. In the extreme, if bitcoin became worthless the average return would only drop to 6.9%. And, equally extreme, if the price rose to $1 million, the return would increase to 7.4%. If the equity portion were reduced to 57% with 3% put into bitcoin, the average return drops to 6.8% in the worthless scenario and jumps to 8.2% if bitcoin hits $1 million. If bitcoin exposure were upped to 5%, the downside return would be 6.7% and the upside return would be 9%. Despite bitcoin trading around $100,000 — a nosebleed level relative to where it had fallen during the so-called crypto winter of 2022 — Edelman believes that the price still has a lot of upward potential because the number of bitcoins is permanently limited and demand for it is increasing. For those who have yet to invest in crypto and would like to, 'the best place to begin is bitcoin,' Edelman said. 'It is by the far the largest digital asset — and it's the digital asset of choice for institutional investors.' And, he added, 'it's different than all other digital assets. It's a store of value and a transmittal (instrument). All the others are designed for specific commercial uses and it's far less certain as to which of the others will be successful.' But investing directly in bitcoin and storing it in your own wallet can be a complicated proposition unless you know what you're doing. 'Scams are a big issue in this space,' Ross said. A far safer route for the novice crypto investor, he and Edelman said, is through an SEC-regulated bitcoin ETF. Not everyone is as immediately bullish as Edelman. In a March note to clients, TIAA chief investment officer Niladri Mukherjee said, 'While broadening enthusiasm around crypto adoption and the bitcoin ETFs are an encouraging sign for the industry, from an investment perspective, its value drivers will take time to develop and to be well understood by market participants.' Given that the industry is still 'quite opaque and unregulated,' Mukherjee added that individuals should do their due diligence before investing. But even before you do that, gut check yourself. When asked who absolutely should not invest in crypto, Edelman was quick to reply: 'Those who cannot emotionally tolerate volatility. Because we know (cryptocurrencies are) highly volatile. You're likely to sell when prices are low.' That's especially the case if you decide to invest directly in a given coin. A good way to test your appetite for volatility is to consider how much you might spend on a nice meal at a favorite restaurant and invest that amount into crypto if it doesn't strain your household budget. Then just watch to see what happens over the next several months, Ross said. 'Track it, read about it, understand its ebbs and flows.' In other words, educate yourself about how things work before making any real commitment to it. Then if you think you're comfortable enough, you might invest small amounts monthly — again, nothing that would compromise you financially, he suggested. In terms of an overall allocation of your assets, Lazetta Rainey Braxton, founder of the financial planning firm The Real Wealth Coterie, said you want an amount that is small enough that it won't undermine the valuation of your portfolio if things go south. And, she added, '(stick) with players that are well known and respected and have the infrastructure in place to make sure that they are offering a solid investment and also the information associated with that.' Trent Porter, a certified financial planner and certified public accountant at Priority Financial Partners, is not a big fan of crypto even with all the developments in recent months easing investment in the space. 'My core advice remains unchanged: Crypto exposure should match an investor's personal risk tolerance and capacity, keeping the allocation small (no more than 5%) for most people. Regulatory risk might have eased, but market risk is still very real, and as we all know, the regulatory environment can change quickly.'
Yahoo
2 hours ago
- Yahoo
Crypto Treasury Companies Are Bullish on Bitcoin and XRP. But Don't Invest.
Start-ups are piling Bitcoin and XRP onto their balance sheets for a few reasons. It's questionable whether their shareholders are getting any value. Owning these assets directly is probably the safer option. 10 stocks we like better than Bitcoin › Strategy (NASDAQ: MSTR) (formerly called MicroStrategy) famously pioneered the Bitcoin (CRYPTO: BTC) treasury concept, buying the crypto and holding it on the company's balance sheet. Now, a crop of start-ups promises to provide the same kind of leveraged exposure to select digital assets for anyone willing to buy their shares. But before you hand any treasury operator a dime, it's important to look at who really captures the value they're advertising, and to understand how the existence of these companies might be favorable for the coins you hold. In a nutshell, crypto treasury companies are businesses that accumulate cryptocurrency assets such as Bitcoin and XRP (CRYPTO: XRP) on their corporate balance sheets. Their aim is to provide investors with indirect exposure to these digital assets while theoretically offering some diversification or additional value compared to investors just buying and holding the main underlying asset. They are a very recent phenomenon, and most will probably not survive even if their main assets do fine during the next decade or so. Over the last quarter, at least five companies launched or pivoted to stockpiling coins as their main strategy, or as a pillar of their financing strategy for their other lines of business. Hong Kong-based logistics group Reitar Logtech Holdings just filed to buy as many as 15,000 Bitcoins, worth roughly $1.5 billion at today's prices. Another company, Twenty One Capital, wants to procure 42,000 Bitcoins, enough to rank third worldwide among corporate holders. Renewable energy player VivoPower International raised $121 million to start a $100 million XRP purchase program. Two smaller private firms announced their intent to form XRP reserves within 24 hours of that deal. More might be on the way. But why are these assets so appealing to hold, and why would investors want to buy shares of a business that only manages assets they don't have any control over? In short, chief financial officers are seeing that low yields on relatively safe assets they already hold, like U.S. Treasuries, look even punier in comparison to the meteoric run-up in prices for assets like XRP and Bitcoin during the past 10 years. They likely figure that a small coin allocation offers a hedge against inflation, without as much risk as an investment in stocks -- though it's not clear that they're correct on that latter point. Furthermore, buying and holding cryptocurrencies means that a company doesn't have to take on any risk of making capital investments in value-generating equipment, nor put hardly any of their operational expenses toward labor, like most companies do. The catch is that every one of these new crypto treasury companies is banking on the same set of assets, and the same infrastructure to support them. Therefore, none of them have any economic moat, nor do they have any competitive advantage. And that means that over the long term, they are more likely to be bad investments than the assets they hold. For example, VivoPower's deal depends on BitGo for cold storage of its coins. Reitar's prospectus lists Coinbase Prime and Anchorage Digital as backup custodians. Insurance, auditing, chain attestations, and cold-storage logistics are effectively off-the-shelf services, which makes them great for operational security, but terrible for outperforming competitors. In other words, if you invest in these crypto treasury businesses, you are paying a premium for coin exposure that's being diluted by the company's need to pay overhead. A skeptical investor might also ask whether picking up shares in these crypto warehouses is safer than holding coins directly. The answer is "not really." Balance-sheet leverage not only amplifies the upside, but also the downside if prices swoon, leaving investors with losses. On the brighter side, assuming that demand from crypto treasury adopters keeps rising, the existence of supply scarcity favors buying and holding the coins themselves. Twenty One's goal of 42,000 Bitcoins alone is equivalent to almost 93 days of global Bitcoin mining issuance. Add Reitar, VivoPower, and a dozen smaller imitators, and the circulating float of coins available for public trading will shrink. None of that accrues uniquely to the corporate holders; it accrues to the protocol. Therefore, the easiest way to surf the wave here is to buy and hold a disciplined position in the digital assets these companies chase. Lastly, remember that volatility cuts both ways. If these crypto treasuries are forced to dump their coins to meet margin calls, prices can swing more violently than what's normal for crypto. Over long time horizons, assuming scarcity and consistent adoption remain intact, equity holders will be forced to eat management fees, dilution, and execution risk that they did not bargain for, whereas those who simply hold the coins won't need to pay for any extras whatsoever. Before you buy stock in Bitcoin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Bitcoin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!* Now, it's worth noting Stock Advisor's total average return is 997% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Alex Carchidi has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin and XRP. The Motley Fool has a disclosure policy. Crypto Treasury Companies Are Bullish on Bitcoin and XRP. But Don't Invest. was originally published by The Motley Fool Sign in to access your portfolio
