Latest news with #BenWerkman
CNBC
02-06-2025
- Business
- CNBC
Bitcoin hit new record because it became less risky, says Swan CIO
Swan Bitcoin CIO Ben Werkman sits down with CNBC at Bitcoin 2025 to discuss the catalysts that helped propel bitcoin to a new record.
Yahoo
29-05-2025
- Business
- Yahoo
Bitcoin Surges Ahead as Strategy Lags
Since the start of this month, a growing divergence has emerged between bitcoin BTC and bitcoin-HODLer Strategy (MSTR). While bitcoin has climbed approximately 13%, nearing the $110,000 mark, MSTR shares have slipped 3%, trading around $372. This performance gap has become more pronounced since mid-May and raises questions about market sentiment toward the company that pioneered the bitcoin treasury strategy for corporations. Despite playing a leading role in this movement, Strategy's stock has not mirrored bitcoin's latest rally. One key factor is the rapid increase in the number of public companies adopting similar bitcoin strategies. According to data from over 113 public companies globally now hold bitcoin on their balance sheets, marking an increase of 11 new entrants over the past 30 days. Many appear to be following Strategy's playbook, but the firm's market premium is compressing, indicating that its early-mover advantage may be fading. Strategy's multiple to net asset value (mNAV), which reflects how the market values the company relative to its bitcoin holdings, has dropped to 1.80 one of its lowest points over the past year. This figure is calculated by dividing the enterprise value (EV) by the market value of its bitcoin holdings. The EV includes MSTR's current market cap, convertible debt, and preferred shares (such as STRK and STRF), minus the company's most recent reported cash balance. A lower mNAV limits Strategy's ability to issue new equity without significantly diluting existing shareholders, although it remains above 1x, preserving some headroom. Strategy's recent 4,020 BTC purchase, its smallest since May 5, also reveals a significant change in funding structure. The acquisition was financed not only through common stock but also through preferred securities — 81.7% from common stock, 15.9% from STRK, and 2.4% from STRF, according to MSTR analyst Ben Werkman. This diversification indicates that the company is strategically tapping alternative instruments via its at-the-market (ATM) offering, possibly to mitigate shareholder dilution and optimize capital raising in a compressed mNAV environment.
Yahoo
30-01-2025
- Business
- Yahoo
Institutions Are Primed for MicroStrategy's Preferred Stock Sale, Say Analysts
Disclaimer: The analyst who wrote this piece owns shares of MicroStrategy (MSTR). To say that MicroStrategy (MSTR) has been at the lead of creatively raising capital with which to buy massive amounts of bitcoin (BTC) would be an understatement. Led by Executive Chairman Michael Saylor, the company this week opened a new front along those lines with its perpetual preferred stock offering (STRK). Preferred stock sits between equity and debt on the corporate balance sheet, offering investors the regular return of bonds while giving them an ownership stake in a company. Well-followed MicroStrategy analyst Ben Werkman, posted on X about the attraction preferred stock can offer institutional investors due to its lack of maturity risk, stable yield and optional equity upside. "I could see a scenario where [the preferred stock] starts taking some of the convertible bond space for fixed income accumulation due to the lack of any point in time maturity risk," said Werkman. "Preferred stock has the potential to be massively more accretive than any convertible offering has been and definitely more accretive than [share sales]." Similar sentiments came via Jeff Park, head of alpha strategies at Bitwise Investments, who called MSTR's preferred stock offering one of the most compelling securities in the market and a next-generation investment vehicle. "STRK is a near-perfect instrument," wrote Park. "It gives you two chances to win: First, when rates go down, it's a huge boon to the principal, and two, if MicroStrategy goes up first, then you have a deep in-the-money (ITM) option to convert and own the higher volatility asset or just directly sell." The largest of the U.S. preferred stock ETFs is the BlackRock iShares Preferred and Income Securities ETF (PFF), which has roughly $15 billion in assets under management. The largest holders of PFF ETF are major corporations such as Boeing (BA), Wells Fargo (WFC) and Citi Group (C). The final pricing terms of the new security are to be completed and announced after the market closes on Thursday. Sign in to access your portfolio
