Latest news with #San Francisco
Yahoo
6 hours ago
- Business
- Yahoo
Saylor's New $4.2 Billion Bitcoin Plan Aims to Reassure Skeptics
(Bloomberg) -- Michael Saylor isn't backing down. The Strategy co-founder is preparing to sell $4.2 billion more in preferred stock to fuel his latest Bitcoin bet — while throwing a lifeline to investors worried he's diluting them into oblivion. The World's Data Center Capital Has Residents Surrounded An Abandoned Art-Deco Landmark in Buffalo Awaits Revival We Should All Be Biking Along the Beach Budapest's Most Historic Site Gets a Controversial Rebuild San Francisco in Talks With Vanderbilt for Downtown Campus The plan, unveiled with second-quarter earnings on Thursday, is Saylor's latest answer to the big question hanging over his stock: how long can he keep using a lofty premium to fund ever-larger Bitcoin buys? To reassure shareholders, Strategy pledged it won't issue new common shares at less than 2.5 times its net asset value, except to cover debt interest or preferred dividends. At the same time, Saylor will keep tapping the market 'opportunistically' when the premium is high, turning equity sales into fresh Bitcoin buys. The move does two things at once: it locks in a floor aimed at reassuring any skeptical shareholders and arms the company with a larger war chest to keep buying Bitcoin. It's a double play that pits Saylor directly against hedge fund managers like Jim Chanos, who have been betting the company's premium will collapse. 'That would put common shareholders who are concerned about potential dilution at ease,' said Brian Dobson, managing director for Disruptive Technology Equity Research at the brokerage firm Clear Street. 'The market is reacting positively to Strategy's equity products. The demand is there as evidenced by their substantial capital raises.' It's the latest in a string of financial maneuvers that have transformed a once-obscure software firm into a leveraged Bitcoin proxy. The dual move showcases Saylor's mastery of capital markets during these bullish digital-asset times: using a self-imposed floor to placate critics, while simultaneously arming the company with fresh ammunition to keep buying Bitcoin. The company - which is known formally as MicroStrategy Inc. — has already raised more than $10 billion this year through stock and structured offerings, feeding a balance sheet now holding $74 billion in Bitcoin. Its stock has surged 3,300% since Saylor's first crypto purchase, outpacing Bitcoin itself and forcing hedge funds into a high-stakes battle over whether his premium-fueled strategy can last. Since Strategy's first Bitcoin purchase in 2020, Saylor has sold equity, issued various types of debt and layered stacks of preferred shares on top. In the process, he has encouraged a fleet of imitators and spurred a new industry of public companies following a so-called treasury strategy dedicated to buying and holding cryptocurrencies. Good Times Since Strategy trades so far above the value of its Bitcoin, the company can sell stock at rich levels, buy more Bitcoin, and in turn reinforce that premium. It's a reflexive loop that critics warn would snap if sentiment shifts. For now, Saylor's ability to turn equity markets into a Bitcoin funding engine has made his firm both a proxy for the cryptocurrency and a pressure point for critics betting the spread will collapse. The company reiterated that it registered an unrealized gain of about $14 billion in the second quarter. After factoring in deferred taxes, the Bitcoin treasury company had net income of $10 billion, or $32.60 a share, the firm said in a statement. The eye-catching benefit, first disclosed at the start of the month, was due to a rebound in Bitcoin's price and a recent accounting change. Demand for offerings can fluctuate depending on Bitcoin prices. The firm had to sweeten one of its earlier preferred stock offerings this year with a steep discount to win over price‑sensitive buyers. Just last week the company launched a new kind of preferred stock, dubbed Stretch, that was upsized from $500 million to more than $2 billion. It was yet another move that showed how deftly Saylor can turn financial engineering into crypto firepower. For now at least. 'Strategy's upsize is a huge reflection on the market demand for its Stretch Preferred Stock offering,' said Tyler Evans, co-founder and chief investment officer of UTXO Management. 'They have had similar upsizes from previous preferred stock offerings, but this one is an eye-popping number.' --With assistance from Kirk Ogunrinde. Burning Man Is Burning Through Cash Russia Builds a New Web Around Kremlin's Handpicked Super App Everyone Loves to Hate Wind Power. Scotland Found a Way to Make It Pay Off Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan ©2025 Bloomberg L.P.
Yahoo
7 hours ago
- Business
- Yahoo
Saylor's New $4.2 Billion Bitcoin Plan Aims to Reassure Skeptics
(Bloomberg) -- Michael Saylor isn't backing down. The Strategy co-founder is preparing to sell $4.2 billion more in preferred stock to fuel his latest Bitcoin bet — while throwing a lifeline to investors worried he's diluting them into oblivion. The World's Data Center Capital Has Residents Surrounded An Abandoned Art-Deco Landmark in Buffalo Awaits Revival We Should All Be Biking Along the Beach Budapest's Most Historic Site Gets a Controversial Rebuild San Francisco in Talks With Vanderbilt for Downtown Campus The plan, unveiled with second-quarter earnings on Thursday, is Saylor's latest answer to the big question hanging over his stock: how long can he keep using a lofty premium to fund ever-larger Bitcoin buys? To reassure shareholders, Strategy pledged it won't issue new common shares at less than 2.5 times its net asset value, except to cover debt interest or preferred dividends. At the same time, Saylor will keep tapping the market 'opportunistically' when the premium is high, turning equity sales into fresh Bitcoin buys. The move does two things at once: it locks in a floor aimed at reassuring any skeptical shareholders and arms the company with a larger war chest to keep buying Bitcoin. It's a double play that pits Saylor directly against hedge fund managers like Jim Chanos, who have been betting the company's premium will collapse. 'That would put common shareholders who are concerned about potential dilution at ease,' said Brian Dobson, managing director for Disruptive Technology Equity Research at the brokerage firm Clear Street. 'The market is reacting positively to Strategy's equity products. The demand is there as evidenced by their substantial capital raises.' It's the latest in a string of financial maneuvers that have transformed a once-obscure software firm into a leveraged Bitcoin proxy. The dual move showcases Saylor's mastery of capital markets during these bullish digital-asset times: using a self-imposed floor to placate critics, while simultaneously arming the company with fresh ammunition to keep buying Bitcoin. The company - which is known formally as MicroStrategy Inc. — has already raised more than $10 billion this year through stock and structured offerings, feeding a balance sheet now holding $74 billion in Bitcoin. Its stock has surged 3,300% since Saylor's first crypto purchase, outpacing Bitcoin itself and forcing hedge funds into a high-stakes battle over whether his premium-fueled strategy can last. Since Strategy's first Bitcoin purchase in 2020, Saylor has sold equity, issued various types of debt and layered stacks of preferred shares on top. In the process, he has encouraged a fleet of imitators and spurred a new industry of public companies following a so-called treasury strategy dedicated to buying and holding cryptocurrencies. Good Times Since Strategy trades so far above the value of its Bitcoin, the company can sell stock at rich levels, buy more Bitcoin, and in turn reinforce that premium. It's a reflexive loop that critics warn would snap if sentiment shifts. For now, Saylor's ability to turn equity markets into a Bitcoin funding engine has made his firm both a proxy for the cryptocurrency and a pressure point for critics betting the spread will collapse. The company reiterated that it registered an unrealized gain of about $14 billion in the second quarter. After factoring in deferred taxes, the Bitcoin treasury company had net income of $10 billion, or $32.60 a share, the firm said in a statement. The eye-catching benefit, first disclosed at the start of the month, was due to a rebound in Bitcoin's price and a recent accounting change. Demand for offerings can fluctuate depending on Bitcoin prices. The firm had to sweeten one of its earlier preferred stock offerings this year with a steep discount to win over price‑sensitive buyers. Just last week the company launched a new kind of preferred stock, dubbed Stretch, that was upsized from $500 million to more than $2 billion. It was yet another move that showed how deftly Saylor can turn financial engineering into crypto firepower. For now at least. 'Strategy's upsize is a huge reflection on the market demand for its Stretch Preferred Stock offering,' said Tyler Evans, co-founder and chief investment officer of UTXO Management. 'They have had similar upsizes from previous preferred stock offerings, but this one is an eye-popping number.' --With assistance from Kirk Ogunrinde. Burning Man Is Burning Through Cash Russia Builds a New Web Around Kremlin's Handpicked Super App Everyone Loves to Hate Wind Power. Scotland Found a Way to Make It Pay Off It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts ©2025 Bloomberg L.P. 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
CNA
9 hours ago
- Business
- CNA
Reddit forecasts strong revenue on AI-driven ad strength, shares surge
Reddit forecast third-quarter revenue above Wall Street estimates on Thursday, betting on growing digital advertising driven by its artificial intelligence-powered marketing tools and sending its shares up 9 per cent in extended trading. The forecast follows bigger rival Meta's upbeat second-quarter results and strong revenue outlook on Wednesday, lifted by the Facebook and Instagram parent's core ad business. Advertisers are increasingly turning to platforms such as Reddit, Meta, and TikTok, which offer advanced AI-powered tools for automated ad creation, precise audience targeting and access to fast-growing user bases. Reddit offers marketers various ad formats, including conversation placement ads, which allow brands to advertise directly within discussion threads in its interest-based communities known as subreddits. The San Francisco, California-based company last month launched two new AI-powered ad features designed to help brands drive engagement by tapping into user conversations on the platform. Reddit expects third-quarter revenue of $535 million to $545 million, well above analysts' average estimate of $473 million, according to data compiled by LSEG. Second quarter revenue rose 78 per cent to $500 million, beating estimates of $426 million. Daily active unique visitors increased 21 per cent to 110.4 million in the quarter ended June 30, while global average revenue per user jumped 47 per cent to $4.53, the company said.
Yahoo
10 hours ago
- Business
- Yahoo
Reddit forecasts strong revenue on AI-driven ad strength, shares surge
(Reuters) -Reddit forecast third-quarter revenue above Wall Street estimates on Thursday, betting on growing digital advertising driven by its artificial intelligence-powered marketing tools and sending its shares up 9% in extended trading. The forecast follows bigger rival Meta's upbeat second-quarter results and strong revenue outlook on Wednesday, lifted by the Facebook and Instagram parent's core ad business. Advertisers are increasingly turning to platforms such as Reddit, Meta, and TikTok, which offer advanced AI-powered tools for automated ad creation, precise audience targeting and access to fast-growing user bases. Reddit offers marketers various ad formats, including conversation placement ads, which allow brands to advertise directly within discussion threads in its interest-based communities known as subreddits. The San Francisco, California-based company last month launched two new AI-powered ad features designed to help brands drive engagement by tapping into user conversations on the platform. Reddit expects third-quarter revenue of $535 million to $545 million, well above analysts' average estimate of $473 million, according to data compiled by LSEG. Second quarter revenue rose 78% to $500 million, beating estimates of $426 million. Daily active unique visitors increased 21% to 110.4 million in the quarter ended June 30, while global average revenue per user jumped 47% to $4.53, the company said. Sign in to access your portfolio
Reuters
10 hours ago
- Business
- Reuters
Reddit forecasts strong revenue on AI-driven ad strength, shares surge
July 31 (Reuters) - Reddit (RDDT.N), opens new tab forecast third-quarter revenue above Wall Street estimates on Thursday, betting on growing digital advertising driven by its artificial intelligence-powered marketing tools and sending its shares up 9% in extended trading. The forecast follows bigger rival Meta's upbeat second-quarter results and strong revenue outlook on Wednesday, lifted by the Facebook and Instagram parent's core ad business. Advertisers are increasingly turning to platforms such as Reddit, Meta (META.O), opens new tab, and TikTok, which offer advanced AI-powered tools for automated ad creation, precise audience targeting and access to fast-growing user bases. Reddit offers marketers various ad formats, including conversation placement ads, which allow brands to advertise directly within discussion threads in its interest-based communities known as subreddits. The San Francisco, California-based company last month launched two new AI-powered ad features designed to help brands drive engagement by tapping into user conversations on the platform. Reddit expects third-quarter revenue of $535 million to $545 million, well above analysts' average estimate of $473 million, according to data compiled by LSEG. Second quarter revenue rose 78% to $500 million, beating estimates of $426 million. Daily active unique visitors increased 21% to 110.4 million in the quarter ended June 30, while global average revenue per user jumped 47% to $4.53, the company said.
