Saylor's Strategy to Raise Another $2 Billion for Bitcoin
Michael Saylor's Strategy plans to offer $2 billion of convertible debt in a private offering, extending the self-styled Bitcoin treasury company's unconventional fundraising strategy.
The firm, which until recently was called MicroStrategy Inc., intends to sell the senior notes due 2030 with a 0% coupon, according to a statement on Tuesday. The offering's proceeds will be used for purposes including acquiring more Bitcoin.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
8 minutes ago
- Yahoo
Jim Chanos Sees Big Short in Saylor's Strategy, But Others Aren't So Sure
(Bloomberg) -- Buy Bitcoin, short Michael Saylor's Strategy. That's the latest call from legendary short-seller Jim Chanos, who sees the arbitrage play as a no-brainer. Others aren't so sure. ICE Moves to DNA-Test Families Targeted for Deportation with New Contract Next Stop: Rancho Cucamonga! The Global Struggle to Build Safer Cars US Housing Agency Vulnerable to Fraud After DOGE Cuts, Documents Warn NYC Residents Want Safer Streets, Cheaper Housing, Survey Says The trade has long been on the radar of Wall Street hedge funds, drawn to the premium Strategy's shares enjoy relative to the value of the company's Bitcoin holdings — a gap that topped 200% last year. The discrepancy stems from Saylor's self-styled Bitcoin treasury strategy, through which he has tapped capital markets to buy more and more of the world's biggest cryptocurrency, in turn attracting billions of dollars from retail investors. In the eyes of many arbitrage specialists, the yawning spread is unsustainable — in fact, it's already begun to narrow, but they see further opportunity to profit. 'I haven't seen an arbitrage like this in this size in years, years and years,' Chanos said during a recent interview on the Risk and Return podcast, referencing the trade he disclosed on CNBC in early May. It's one of a series of sophisticated trading strategies around the complex capital structure of Saylor's firm, formerly known as MicroStrategy, and the growing ecosystem of crypto investment vehicles. Some market players see parallels to the once-popular 'widow-maker' pair trade involving Bitcoin and the Grayscale Bitcoin Trust, but with fewer constraints. There are still risks involved, though. Chanos, known for his prescient bet against Enron Corp. 20 years ago, emphasized that his current favored trade isn't a wager against Bitcoin or Strategy, but rather a mirror of Saylor's own playbook: selling equity and raising capital to buy more digital assets. The core opportunity, he said, lies in the divergence between Strategy's market price and the company's Bitcoin-adjusted book value. 'The fact of the matter is, this is a Bitcoin holding company,' Chanos said on the podcast explaining the premium dislocation. Buying Strategy shares at their current price of around $400, he said, is effectively equivalent to buying Bitcoin at about two times its value — 'paying around $220,000 for Bitcoin that trades at $110,000. But the company is doing everything it can to close that spread, which is great — there's a catalyst.' A growing number of copycats have also started pursuing similar crypto-treasury strategies, further shifting supply-demand dynamics, Chanos added on the podcast. The investor didn't respond to a request for comment, nor did representatives for Strategy. On a basic level, the premium as measured by Strategy's market capitalization relative to its Bitcoin holding value stands at 70%, according to Bloomberg calculations. Taken a step further — adding in other dilutive securities the company has employed in its massive capital raising in the last year and removing the value of Strategy's legacy software business — and investors are paying a premium for the stock that's nearly double the value of the firm's Bitcoin holdings. If Bitcoin rises but Strategy's premium compresses — or if share dilution outpaces gains— Chanos' trade would turn a profit. Yet like any arbitrage, the spread may widen before it narrows, as seen in the GBTC trade around 2021. Premium Warranted? Some analysts and retail believers argue that a substantial premium in Saylor's firm is warranted, placing it in a unique category. First of all, Strategy offers investors exposure to a zero-fee Bitcoin vehicle, offering an edge over comparable exchange-traded funds. What's more, the company demonstrated an ability to use leverage to grow Bitcoin per share over time, an added value for investors buying the stock instead of the ETFs or underlying crypto, according to TD Cowen analyst Lance Vitanza, who believes Strategy's Bitcoin per share will increase by 26% this year. 'I expect MSTR will trade around its recent historical premium, either side of 100%, for the foreseeable future,' he said, referring to Strategy's ticker. Timing — when to enter and exit the wager— remains a key variable around returns, given the spread's ongoing volatility. In March 2024, Kerrisdale Capital Management promoted a similar pair trade in a letter titled 'Know When to HODL, Know When to FODL,' in a nod to crypto lingo. The firm still stands by its thesis, but 'I don't have the trade on now,' said founder Sahm Adrangi. 'When we put out the report, the premium was much higher and it made sense at that point. Is it going to zero? I don't really know,' he said, declining to specify when the firm closed the position. To Chanos and other fans of the trade, Strategy's ample market capitalization — now over $100 billion — and deep float make it relatively easy to maintain the short leg. For hedge funds, new borrows are being priced at a fee of 0.3 percentage point, according to data from S3 Partners. This helps to keep the cost of carry manageable while waiting for the spread to narrow. The inexpensive terms are likely to persist, given the stock's roughly 250 million free floating shares, and that only 11% is currently sold short, said Sam Pierson, director of research at the firm. But that doesn't eliminate the risk that the borrowing dynamics could change — potentially becoming more expensive and less stable, especially for individual investors, said Victor Haghani, chief investment officer of Elm Wealth and founding partner of Long Term Capital Management. There's a lot of demand for borrowing shares related to convertible arbitrage wagers and leveraged short ETFs, he added. Another source of uncertainty is the potential for an unexpected corporate event, such as a merger that might shift the company's fundamental business, complicating premium estimates and muddying the existing trade. 'Say if all of a sudden Strategy is part of something that is twice as big — then when you try to look at the valuation relative to the Bitcoin it holds, you can't really say that much anymore because now there's a business with revenues,' Haghani said. Still, he is confident of the spread's long-term convergence. 'My expectation is that in four or five years at the longest, the premium will be zero or even negative,'he said. 'I think this is a good trade, a good one possibly for hedge funds, but it's not one I'd want to put on in my personal account for the risks involved and my disadvantaged position relative to hedge funds in running the trade.' --With assistance from Tom Contiliano. Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Is Elon Musk's Political Capital Spent? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P.
Yahoo
20 minutes ago
- Yahoo
Investing $15,000 Into Each of These 3 Stocks 5 Years Ago Would Have Created a Portfolio Worth $1 Million Today
Strategy, Mara Holdings, and Verona Pharma have each risen by more than 1,500% in the past five years. Investments in speculative cryptocurrency plays like Strategy and Mara Holdings can pay off. They can also go quite badly. Verona Pharma is a less speculative investment now that it has its first approved treatment on the market. 10 stocks we like better than Strategy › If you want to achieve significant gains in the stock market, you'll probably want to plan to hold on and remain invested for many years, or even decades. But in some cases, big payoffs can come much faster than that. The benefit of investing in growth stocks is that they have the potential to deliver some terrific returns. For example, growth stocks Strategy (NASDAQ: MSTR), Mara Holdings (NASDAQ: MARA), and Verona Pharma (NASDAQ: VRNA) have yielded fantastic gains for investors over the past five years. If you had invested $15,000 into each one of these stocks just five years ago and held on, you would have a portfolio worth more than $1 million today. The question is, do they still have the potential for further significant gains for investors who buy them right now? A $15,000 investment made five years ago into the company that at that time called itself MicroStrategy would now be worth around $458,000. That's a staggering return when you consider that its core technology business hasn't been taking off. The company, which earlier this year shortened its name to Strategy, has actually experienced a decline in revenue in recent years. While it's nominally involved in providing business intelligence solutions, the reason its stock skyrocketed was tied to its aggressive moves in the cryptocurrency space. Strategy is the largest corporate holder of Bitcoin (CRYPTO: BTC), with a stash that now totals more than 500,000 coins. The company routinely updates investors on its position and Bitcoin holdings. Executive Chairman Michael Saylor is incredibly bullish on the popular digital currency's potential value, predicting that its token price will climb to well over $1 million in the future, and suggesting that it could potentially top $13 million by 2045. Strategy stock could still rise higher if Bitcoin does well. But it's a highly speculative buy: Its valuation is not tied to its overall performance, but is instead contingent on how strong the crypto market is. If you're bullish about that, you may feel that the stock could be a good buy. But for the majority of investors, this investment is likely to be too risky and speculative to hold. Bitcoin mining company Mara has also benefited from the cryptocurrency's rising value over the past five years. During that stretch, a $15,000 investment into the stock would have grown into a holding worth approximately $290,000. Remarkably, that result includes a steep drop that it hasn't fully recovered from yet: The crypto stock is down by more than 50% from where it began 2022. In the past three years, the company's bottom line has fluctuated drastically, from a loss of more than $694 million in 2022 to a profit of $541 million in 2024, and the stock has been similarly volatile. Its performance inevitably hinges on the changes in the market value of the digital assets it mines and holds. As with Strategy, this is a speculative buy, as Mara's valuation will ultimately depend on how well Bitcoin is doing. This isn't a stock I'd suggest owning unless you have an extremely high risk tolerance. The only stock on this list that hasn't amassed its gains due to crypto is Verona Pharma. However, the biopharmaceutical company has still generated impressive returns for investors. A $15,000 investment in the business five years ago would now be worth $267,000. Add that to the gains from your hypothetical $15,000 investments in the other two companies mentioned, and you'd have around $1.02 million. Shares of Verona started to take off in June 2024 after the company obtained Food and Drug Administration approval for Ohtuvayre as a maintenance treatment for chronic obstructive pulmonary disease. Analysts believe Ohtuvayre can become a blockbuster drug, generating more than $1 billion in annual revenue for Verona by 2029. Verona incurred a loss of more than $173 million last year, but with Ohtuvayre already beginning to generate sales, the business is on a much more positive trajectory. The stock's valuation isn't cheap, as its market cap is hovering around $7 billion. But given its promising growth prospects and its possible path to profitability, it's the only stock on this list that I'd consider buying today. Before you buy stock in Strategy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Strategy 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 $668,538!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $869,841!* Now, it's worth noting Stock Advisor's total average return is 789% — 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 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy. Investing $15,000 Into Each of These 3 Stocks 5 Years Ago Would Have Created a Portfolio Worth $1 Million Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23 minutes ago
- Yahoo
Cryptocurrency Mining Global Strategic Business Report 2025: Market to Reach $3.3 Billion by 2030 - Rising Crackdowns and Mining Bans in High-Consumption Jurisdictions Create Realignment Opportunities
The report delivers in-depth market insights, covering recent tariff developments and their impact on the industry. Despite regulatory uncertainties, mining plays a crucial role in the crypto ecosystem, driven by innovations in ASIC technology and sustainable practices. The report identifies global leaders, with the US now a mining hotspot following China's restrictions. It also explores how technological advancements and geographic strategies drive mining efficiency. Key trends, market projections, and competitive analyses are detailed, providing actionable insights into future opportunities. Cryptocurrency Mining Market Dublin, June 05, 2025 (GLOBE NEWSWIRE) -- The "Cryptocurrency Mining - Global Strategic Business Report" report has been added to global market for Cryptocurrency Mining was valued at US$2.2 Billion in 2024 and is projected to reach US$3.3 Billion by 2030, growing at a CAGR of 6.9% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. Recent volatility in token prices has prompted significant restructuring within the mining sector, with newer players exiting and established operators consolidating their infrastructure, negotiating energy contracts, and upgrading to next-generation mining rigs. The long-term appeal of mining lies in its role as a gateway to native crypto asset accumulation and its emerging integration with energy sector innovation, including load balancing, grid stabilization, and flare gas monetization. As institutions and sovereign entities explore Bitcoin reserves and CBDCs, mining continues to operate as both a decentralized economic incentive system and a geopolitical digital asset infrastructure. What Is Driving the Expansion and Diversification of the Cryptocurrency Mining Market?The growth in the cryptocurrency mining market is driven by expanding blockchain use cases, institutional adoption of crypto assets, and rising public awareness of decentralized finance. Mining continues to offer an accessible entry point into the digital asset economy, particularly for entities that seek exposure to Bitcoin without direct market purchases. The deflationary nature of Bitcoin, combined with finite issuance, makes mining a long-term accumulation strategy for bullish pressures and environmental critiques have accelerated the adoption of green mining practices, prompting innovation in energy sourcing, waste heat recovery, and emissions accounting. Regulatory clarity in key markets is enabling capital investment, IPOs, and cross-border equipment procurement - transforming mining from an opaque practice into a structured, compliance-driven as blockchain security becomes a matter of national interest, mining is being viewed through the lens of sovereignty and infrastructure resilience. Sovereign miners, state-backed facilities, and strategic reserves are becoming part of the broader digital asset policy toolkit. As energy markets, monetary systems, and cryptographic infrastructure converge, cryptocurrency mining is evolving into a strategically significant, energy-integrated sector poised for cyclical yet resilient Technological and Operational Advances Are Reshaping Mining Efficiency and Profitability?The rapid evolution of mining hardware - particularly application-specific integrated circuits (ASICs) - is driving higher hash rates per watt, improving mining economics and reducing breakeven costs. Top-tier machines such as Bitmain's Antminer series and MicroBT's WhatsMiner units are capable of delivering terahashes of processing power while maintaining optimized thermal profiles. Air-cooled, immersion-cooled, and liquid-cooled mining setups are now being widely adopted to manage energy-intensive operations and enhance unit and algorithmic optimization are increasingly used in mining fleet management for dynamic load adjustment, fault prediction, and real-time energy consumption analytics. Mining firmware solutions allow overclocking, undervolting, and automated workload balancing based on electricity pricing, hardware condition, and network difficulty. Some mining operations are deploying mobile containerized units, enabling rapid relocation to areas with surplus renewable energy or favorable regulatory the network side, mining pool decentralization, stratum v2 adoption, and transaction batching are improving efficiency and reducing orphan blocks. Integration with Layer 2 payment channels and smart contract blockchains is also expanding the application landscape of mining beyond Bitcoin - into altcoins like Litecoin, Monero, and Ethereum Classic, particularly after Ethereum's full migration to Are the Dominant Participants and How Are Geographies Shaping Mining Strategies?The mining ecosystem comprises publicly traded mining firms, private farms, mining pools, hardware manufacturers, and infrastructure hosting providers. Leading companies such as Marathon Digital, Riot Platforms, Bitfarms, and Hive Blockchain operate large-scale farms with institutional financing, vertically integrated power sourcing, and direct-to-market coin liquidity strategies. At the same time, decentralized individual miners and syndicate-based pools contribute to network resilience and hash rate the United States has emerged as the global leader in Bitcoin mining hash rate following China's 2021 crackdown. States such as Texas, Wyoming, and Georgia offer low-cost energy, favorable regulations, and stranded renewable capacity. Canada, Kazakhstan, Russia, Paraguay, and the UAE have also developed competitive mining sectors, leveraging climate, power access, or sovereign backing. Energy cost, regulatory risk, and infrastructure reliability remain the three decisive factors shaping mining location mining operators are co-locating with renewable energy plants, using curtailed wind or solar capacity to power off-grid mining hubs. Others are exploring demand response agreements with utilities to modulate power loads during grid stress. In emerging markets, mining is increasingly used as a monetization model for excess hydroelectric generation or flare gas capture, transforming waste energy into a cryptographic security Scope Key Insights: Market Growth: Understand the significant growth trajectory of the Small Miners segment, which is expected to reach US$1.9 Billion by 2030 with a CAGR of a 5.6%. The Large Miners segment is also set to grow at 9.0% CAGR over the analysis period. Regional Analysis: Gain insights into the U.S. market, valued at $592.3 Million in 2024, and China, forecasted to grow at an impressive 10.6% CAGR to reach $670.0 Million by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific. Report Features: Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030. In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa. Company Profiles: Coverage of players such as Argo Blockchain, Bitfarms, Bitfury, Bitmain Technologies Ltd., Canaan Creative Co., Ltd. and more. Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments. Segments Mining Enterprises (Small Miners, Large Miners) Mining Type (Self-mining, Cloud Mining, Remote Hosting Services) Revenue Source (Block Rewards, Transaction Fees) Tariff Impact Analysis: Key Insights for 2025What's Included in This Edition: Tariff-adjusted market forecasts by region and segment Analysis of cost and supply chain implications by sourcing and trade exposure Strategic insights into geographic shifts Buyers receive a free July 2025 update with: Finalized tariff impacts and new trade agreement effects Updated projections reflecting global sourcing and cost shifts Expanded country-specific coverage across the industry Key Attributes: Report Attribute Details No. of Pages 276 Forecast Period 2024 - 2030 Estimated Market Value (USD) in 2024 $2.2 Billion Forecasted Market Value (USD) by 2030 $3.3 Billion Compound Annual Growth Rate 6.9% Regions Covered Global Key Topics Covered: MARKET OVERVIEW Influencer Market Insights World Market Trajectories Impact of COVID-19 and a Looming Global Recession Cryptocurrency Mining - Global Key Competitors Percentage Market Share in 2025 (E) Competitive Market Presence - Strong/Active/Niche/Trivial for Players Worldwide in 2025 (E) MARKET TRENDS & DRIVERS Surge in Institutional Investment and Token Market Maturity Drives Demand for Mining Infrastructure Expansion of Blockchain Protocols and DeFi Ecosystems Throws the Spotlight on Proof-of-Work Mining Growth in Hashrate and Mining Difficulty Spurs Innovation in ASIC and GPU Hardware Performance OEM Emphasis on Energy-Efficient Mining Rigs Strengthens Regulatory and Environmental Compliance Migration of Mining Operations to Renewable-Powered Sites Supports Sustainable Growth Models Rising Crackdowns and Mining Bans in High-Consumption Jurisdictions Create Market Realignment Opportunities Development of Modular, Mobile, and Containerized Mining Farms Enhances Scalability and Flexibility OEM Collaboration With Utility Providers Fuels Strategic Co-Location Near Power Generation Facilities Expansion of Mining-as-a-Service (MaaS) and Hosted Facilities Broadens Access for Retail Investors Volatility in Token Valuation and Transaction Fee Structures Drives Profitability Optimization Strategies OEM Integration of Immersion Cooling and Thermal Management Systems Extends Hardware Lifespan Shift Toward Layer-2 Protocols and Merged Mining Models Strengthens Multi-Chain Incentivization Regulatory Focus on KYC, AML, and Taxation of Mining Revenues Spurs Industry Formalization OEM Development of AI-Based Mining Optimization Software Enhances Yield per Megawatt Increased Use of Renewable Energy Credits and Carbon Offsets Supports ESG Reporting for Mining Firms Global Redistribution of Hashrate Post-Geopolitical Disruptions Creates Market Entrant Opportunities OEM Support for Decentralized Mining Pools and Non-Custodial Reward Mechanisms Fuels Miner Autonomy Demand for Data Center Conversion Into Crypto Mining Facilities Expands Use of Legacy IT Infrastructure Integration of Smart Contracts and Token Staking in Hybrid Models Challenges Pure Mining Profitability Adoption of Blockchain Analytics and Compliance Tools Strengthens Legal Standing for Mining Enterprises FOCUS ON SELECT PLAYERS:Some of the 48 companies featured in this report Argo Blockchain Bitfarms Bitfury Bitmain Technologies Ltd. Canaan Creative Co., Ltd. Cipher Mining CleanSpark Inc. Core Scientific Holding Co. DMG Blockchain Solutions Inc. Ebang International Holdings Inc. Galaxy Digital Holdings Ltd. Greenidge Generation Holdings Inc. Hive Blockchain Technologies Ltd. Hut 8 Mining Corp. Iris Energy Ltd. Marathon Digital Holdings, Inc. MicroBT Riot Platforms, Inc. Stronghold Digital Mining Inc. TeraWulf Inc. For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. Attachment Cryptocurrency Mining Market CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900Sign in to access your portfolio
