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Michael Saylor Announces Plans to Raise $21 billion from Stock Sale

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  • Michael Saylor announced plans to raise funds to buy Bitcoin by issuing and selling $21 billion worth of MicroStrategy shares.
  • The equity raise is part of a larger plan to raise $42 billion for Bitcoin purchases over the next three years.
  • The at-the-market equity offering will dilute current shares by 42% of their capitalisation, which currently stands at $50 billion.

Michael Saylor, co-founder and Chairman of MicroStrategy, announced plans to raise $21 billion to buy more Bitcoin by offering more MSTR shares at prevailing market prices. The amount of shares issued would dilute the value of existing shares held by current shareholders.

Usually, this level of dilution would lead to a significant discount in stock price to retain the same overall value, which is manifest by a fall in stock prices.

However, MicroStrategy’s stock price has not fallen significantly since the announcement, due largely to its cohort of shareholders, the performance of its stock since 202, and its Bitcoin holding.

An overview of MicroStrategy’s Bitcoin purchases

MicroStrategy began buying Bitcoin in 2020, at a time when adding Bitcoin to corporate balance sheets was not as accepted as it is today. Over the last four years, the company has issued corporate debt notes to fund its Bitcoin purchases and currently holds 252,220 Bitcoin (roughly 1% of the total Bitcoins supply) worth roughly $17.6 billion.

The company’s most recent purchase was in September 2024, when it bought 7,420 Bitcoin at an average price of $61,750 per BTC, totalling $458.2 million, which it raised by offering senior debt notes.

Shareholders hope despite dilution concerns

MicroStrategy is in a unique position because the size of its Bitcoin holdings creates a correlation between Bitcoin’s price performance and that of its stock. With each major Bitcoin purchase, MSTR moves closer to being a quasi-Bitcoin spot ETF.

However, the total cost of MicroStrategy’s Bitcoin purchases hovers around $9.9 billion while the current value of the company’s holding is 95% higher than the cost price, a performance that has fueled the company’s stock rally.

MSTR, which traded around $13 in 2020 when MicroStrategy began its Bitcoin buying strategy, is currently trading at $244.50. The share price has grown 250% this year alone, outpacing Bitcoin’s 60% performance.

MicroStrategy’s capital plans and Saylor’s projections

Michel Saylor’s plan to buy $42 billion worth of Bitcoin over the next three years, fueled by a $21 billion equity raise and debt notes, could increase the company’s Bitcoin holdings by threefold, depending on the average buy price.

Saylor expects Bitcoin to reach between $3 million and $49 million in the next 20 years and is therefore building MicroStrategy into a Bitcoin bank.

Bitcoin trades at $70,105 as of publishing after recently testing the all-time highs of $73,000 reached in March 2024.



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What Past US Elections Reveal About Crypto Market Trends

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The US Presidential election is anticipated to have a substantial impact on global markets, with the cryptocurrency sector standing as no exception. Traders, analysts, and crypto enthusiasts worldwide closely monitor the US, where shifting attitudes toward digital assets make a difference.

In a recent report, on-chain analytics platform Santiment explored the connection between the most important US political event and crypto market movements. With results expected in days, here’s a look back at the crypto market reactions during the last two US presidential election cycles.

How Did US Elections Impact Crypto During Past Cycles

Analysts expect a close race in the 2024 US presidential election and predict a prolonged counting period. Given the tight competition, multiple days may pass after Election Day on Nov. 5 before the final results are confirmed and the next president is publicly announced.

In past elections, markets have reacted swiftly to presidential outcomes. Officials announced Joe Biden’s victory in 2020 four days after Election Day, triggering positive trends despite ongoing global economic turbulence from COVID-19.

While the election influenced market movements, some argue that a bull run was already on the horizon as the international community focused on economic recovery and pandemic response.

Crypto Market Dynamics in November 2016
Crypto Market Dynamics in November 2016. Source: Santiment

After Donald Trump’s 2016 victory, the crypto market saw a minor five-day retrace, with Bitcoin and altcoins dipping before quickly rebounding from the initial volatility. Cryptocurrency markets are famously volatile, and election cycles tend to amplify this effect.

In 2020, Joe Biden’s win fueled optimism for stimulus-driven policies and potentially more lenient monetary practices, leading to a surge in crypto prices. The brief dip and swift recovery in 2016, contrasted with the post-election rally in 2020, highlight how political shifts can significantly impact market trends.

As a result, the announcement of Joe Biden’s victory in the 2020 election was far more positive for crypto, and markets reacted almost instantly after the news broke.

Read more: How Can Blockchain Be Used for Voting in 2024?

Crypto Market Dynamics in November 2020
Crypto Market Dynamics in November 2020. Source: Santiment

The 2024 election is expected to bring significant price fluctuations in crypto markets, driven by the incoming administration’s stance on regulation and policy. Both major presidential candidates have outlined their views on cryptocurrency, offering a glimpse into the potential direction of US digital asset policy in the years ahead.

Candidate Positions on Cryptocurrency: Trump vs. Harris

Donald Trump

Cryptocurrency enthusiasts widely view Trump’s proposals as more favorable due to his emphasis on industry-friendly policies and his family’s active involvement in digital assets. The crypto community has largely responded positively to his proposals, which many view as encouraging to market growth:

  • National Bitcoin Reserve: Trump proposed creating a national bitcoin stockpile at the Bitcoin 2024 conference in July, aimed at establishing the US as a cryptocurrency frontrunner.
  • Crypto-Friendly Regulatory Policies: Trump has pledged to create a presidential advisory council on cryptocurrency, aiming to develop clear, favorable regulations.
  • SEC Leadership Overhaul: Trump has stated he would replace SEC Chair Gary Gensler, aiming for a regulatory shift he describes as more favorable to digital assets.
  • Family Ventures in Crypto: Trump’s sons, Donald Trump Jr. and Eric Trump, recently launched World Liberty Financial, a cryptocurrency exchange, underscoring the family’s involvement in the industry.
Kamala Harris

Harris, though supportive, emphasizes consumer protection, which some in the crypto space interpret as less conducive to industry expansion:

  • Support for Innovation in Digital Assets: Harris has voiced support for digital assets and AI, emphasizing the need to foster innovation while protecting consumers.
  • Framework for Regulatory Clarity: Harris proposed a regulatory framework for digital assets in October 2024, focusing on investor protections and transparent guidelines.
  • Blockchain’s Potential: Harris has acknowledged blockchain technology’s potential, calling for balanced regulations that support innovation without compromising consumer safety.
  • Engagement with Industry Leaders: Harris has engaged in dialogue with cryptocurrency leaders throughout 2024, signaling her openness to digital innovations while maintaining regulatory standards.

These differing approaches have resulted in a significantly higher volume of mentions around Trump’s crypto discussions and policies compared to Harris’s, reflecting the community’s heightened interest in his approach.

Mention Rate Trump vs. Harris, 2024
Mention Rate Trump vs. Harris, 2024. Source: Santiment

On Polymarket, prediction rates show higher support for Trump over Harris among the crypto community, though Harris has recently closed the gap, making it a closer race.

Read more: How To Use Polymarket In The United States: Step-by-Step Guide

Regardless of who wins the 2024 election, the cryptocurrency sector anticipates continued growth and evolving regulatory frameworks as the new administration steps in. The crypto community will closely observe how the incoming administration navigates the rise of digital assets, balancing the drive for innovation with regulatory safeguards.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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VanEck Expands DeFi Offerings with PYTH ETN on Euronext

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Asset manager VanEck has launched a new ETN based on PYTH, specifically for European buyers. The Pyth network, a decentralized oracle protocol, has earned praise from VanEck for its potential to transform the DeFi landscape.

This launch follows several similar crypto-focused ventures by VanEck in recent months.

VanEck Launches PYTH ETN

According to a recent press release, asset manager VanEck is listing a new exchange-traded note (ETN) based on PYTH today. The Pyth network is a decentralized oracle protocol that uses PYTH as a network token. PYTH’s value has risen slightly since this announcement, bucking a decline this month, but there has not been a substantial price jump.

This new ETN is one of several recent crypto project investments by VanEck. Earlier in October, the firm launched a $30 million venture fund aimed at crypto startups and, just last week, partnered with Kiln to offer Solana staking.

Read more: What Is a Blockchain Oracle? An Introductory Guide

PYTH Valuation
PYTH Valuation on November 5. Source: BeInCrypto

VanEck publicly stated that Pyth’s technical potential inspired its latest ETN offering. Listed on Euronext Paris and Euronext Amsterdam, the ETN is now available to investors. Although distinct from an ETF, it shares some similarities: its value is tied to PYTH, and VanEck secures the ETN’s underlying assets in cold storage.

“Smart contracts… are gaining increasing significance in the financial world… and oracle networks play a crucial role in enabling [their] real-world use. With our Pyth ETN, investors have the opportunity to participate in the development of… Pyth Network, which has the potential to become a crucial part of DeFi application infrastructure,” VanEck Europe CEO Martijn Rozemuller said.

Read more: Crypto ETN vs. Crypto ETF: What Is the Difference?

However, it remains unclear whether “underlying assets” specifically refers to PYTH tokens. The ETN’s value is derived from the MarketVector Pyth Network VWAP Close Index, which in turn tracks PYTH’s value indirectly. This layered approach to value calculation may help explain why PYTH’s price has remained relatively stable since the announcement.

The press release also notes that the ETN is available across 15 European countries under the ticker VYPT, with a total expense ratio of 1.5%. VanEck cautions twice in its statement about the “risk of extreme volatility” associated with the product.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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Swift, UBS, Chainlink Pilot Simplifies Tokenized Fund Transactions

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In partnership with UBS Asset Management and Chainlink, Swift has completed a pilot program designed to streamline tokenized fund transactions through its established financial network.

Conducted as part of the Monetary Authority of Singapore’s (MAS) Project Guardian, this pilot demonstrates how financial institutions can leverage Swift’s existing infrastructure to manage off-chain cash settlements for tokenized assets.

Swift, UBS Asset Management, and Chainlink have completed a pilot for settling tokenized fund subscriptions through the Swift network. The initiative addresses inefficiencies in the $63 trillion global mutual fund market by connecting 11,500 institutions to streamline manual processes and cut costly settlement delays that hinder liquidity.

“Chainlink is enabling institutions to reuse Swift’s infrastructure to facilitate payments for digital asset transactions. I am very excited by the upcoming adoption of these off-chain payment capabilities and how they will increase the flow of capital and expand the possible user base of digital assets,” Chainlink co-founder Sergey Nazarov said.

Read more: RWA Tokenization: A Look at Security and Trust

Chainlink and Swift’s pilot bears real potential in demonstrating how financial institutions can streamline these processes in the future. It automates payment processing for tokenized investment funds without requiring a fully blockchain-based system. This approach makes transactions faster and more efficient.

The pilot builds on earlier work between UBS Asset Management and SBI Digital Markets. Their previous collaboration focused on developing a Digital Subscription and Redemption system for tokenized funds.

Using Swift’s established infrastructure, the pilot demonstrated how fund transactions could be settled efficiently by connecting traditional systems with blockchain. Upon meeting specific conditions, UBS’s tokenized investment funds automatically issued or canceled fund tokens for investors.

UBS rolled out a tokenized fund on the Ethereum blockchain on November 1. The “UBS USD Money Market Investment Fund Token,” known as “uMINT,” aims to meet growing demand for tokenized assets. Meanwhile, MAS highlighted its dedication to asset tokenization, drawing insights from 40 institutions and 15 pilot trials.

“Our collaboration with UBS Asset Management and Chainlink under MAS’ Project Guardian uses the Swift network to bridge digital assets with existing systems. This approach supports our goal of helping financial institutions securely transact across various digital asset classes and currencies,” Swift Head of Strategy Jonathan Ehrenfeld commented.

Read more: How To Invest in Real-World Crypto Assets (RWA)?

The pilot highlights the growing momentum toward integrating digital assets with mainstream financial systems, illustrating how established infrastructures like Swift’s can support the fast-evolving digital economy.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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