MicroStrategy is enjoying great interest and almost all ammo. What else can I do?

MicroStrategy bullet figures

December 9, 2020MicroStrategy (Nasdaq: MSTR) [1] announced the announcement of a full board swap agreement of $ 650 million, including $ 550 million in swaps and $ 100 million in swaps in the choice. The trade date is December 15, 2025 it is a commodity. Among them, the coupon price for the swap contract is 0.750%, and interest is paid for half a year. The exchange rate is about $ 397.99 per share, or about 37.5% of the share's closing price at $ 289.45 on December 8. After deducting the first purchase price of discounts, fees and shipping charges, the proceeds from the sale of the ticket are estimated to be US $ 635 million. Since then, MicroStrategy has purchased 29,646 bitcoins [2] for approximately $ 650 million in cash, with an average value of approximately $ 21,925.To date, MicroStrategy totals 70,470 Bitcoins, with a total value of approximately $ 1.125 billion and an average purchase value of $ 15,964.

February 17, 2021,MicroStrategy [3] has once again announced that it will announce the exit of an old-fashioned exchange with a total stake of $ 1.05 billion, including $ 900 million in complaints and $ 150 million options. The exchange date is December 15, 2027. The exchange rate is approximately $ 1,432.46 per share, or approximately 50% of the closing share price at $ 955.0 in December. 8. After deducting discounts and upfront customer payments and shipping costs, net sales are estimated at $ 1.03 billion. Since then, MicroStrategy has purchased 19,452 bitcoins [4] for approximately $ 1,026 billion in cash, with an average value of around $ 52,765.To date, MicroStrategy totals 90,531 Bitcoins, with a total value of around $ 2.171 billion and an average value of around $ 23,985.

June 8, 2021,MicroStrategy [5] announced a non-binding contract with the CEO of $ 500 million due to growth in 2028, a 6.125% coupon rate and interest every six months, so it is expected to pay interest of $ 15.325,000 in June. December 15 and 15 of each year. After deducting the first buyer's discount and shipping and shipping charges, revenue is approximately US $ 488 million. Since then, MicroStrategy has purchased 13,005 Bitcoins [6] for approximately $ 490 million in cash, with an average value of $ 37,617.To date, MicroStrategy owns 105,085 Bitcoins, with a total value of approximately $ 2.74 billion and an average value of approximately $ 26,080.

MicroStrategy的Stock "balle"

14 avril 2021,MicroStrategy has an open sales contract with its representative, Jefferies LLC [7], where Jefferies sometimes issues commercial products with a share price of up to US $ 1 billion. As of September 30, 2021, MicroStrategy had sold 555,179 shares of Jefferies Naturals at an average price of about US $ 727.64 per share, according to its triennial financial report [8]. Sales revenue was approximately $ 399.5 million. And the total cost of buying Bitcoin in the third quarter was around $ 420 million,To date, MicroStrategy totals 114,042 Bitcoins, with a total value of around $ 3.16 billion and an average value of around $ 27,713.

December 9, 2021,MicroStrategy has announced that it will add 8,436 Bitcoins in the fourth quarter for a total of $ 496 million, with an average value of around $ 58,748.To date, MicroStrategy has a total of 122,478 Bitcoins, with a total value of around $ 3.66 billion and an average value of around $ 29,861.

As of December 9, the 1 billion shares included in the sales contract are still available for sale for around $ 100 million.

Your ability to pay interest determines whether to sell.

MicroStrategy the remaining 100 million "bales" are provided by the sale of commercial products, so they do not receive interest and do not need to use them because the average price of their current jobs is higher than the costs of the company. This driving cost of $ 100 million is low. In other words, if Bitcoin rises in the market forecast, MicroStrategy will not suffer further even if it does not sell the remaining 100 million shares. And if Bitcoin doesn't respond to market speculation, that $ 100 million bottom line will fall into the bucket. so,What we really need to be careful of is not how many Bitcoins MicroStrategy can buy, but their ability to pay interest depending on when they are sold.

According to its third quarter financial data, as of September 30, MicroStrategy has paid $ 17.52 million in interest this year, including $ 20.625 billion in interest on the June 15 first payment.We estimate that MicroStrategy will pay at least $ 50,075,000 (1,752,206.25 3062.5) in interest per year starting in 2022.

Two years ago, MicroStrategy's quarterly EBIT peaked at around $ 10 million (excluding Bitcoin damage), or $ 40 million per year. If trading profits do not increase further, you may find that MicroStrategy's EBIT will not be able to pay interest for many years. At this point, the company should be raising more money or selling bitcoin to pay off debts. But the good news is that the company now has around $ 57 million in cash. This should be enough so that you have no financial problems until June 15 of next year.

Since the Fed hikes rates in June of next year, MicroStrategy could buy all the cash to pay future interest rates, and the company faces a cut if the currency drops and tough repayment charges . So far, with interest rates reaching the maximum level of profitability, it looks like it will be difficult to get a loan for the next four years. Therefore, in order to be financially secure, there are only two ways to avoid having to sell additional commodities to the SEC or sell bitcoin.

If the sale goes through, the value will be over $ 500 million, as MicroStrategy will have to pay insufficient funds to eliminate the high interest rates. However, this is because the investment in February of this year is not expected to exceed $ 1.4 billion by investors in February of this year, and the investment before the year is minimal, so once sold, it may be difficult to redeem it. same price. The years were high, there was no money or access, there were hard times, so don't rush to sell. (Original image from btcmanager)

Remember that the $ 1.5 billion Microstrategy 'new chip' has become a Bitcoin ETF, but it comes with two major risks.

1, https://www.microstrategy.com/content/dam/website-assets/collateral/financial-documents/press-release-archive/MicroStrategy-Announces-Pricing-of-Offering-of-Convertible-Senior-Notes. PDF

2, https://www.microstrategy.com/content/dam/website-assets/collateral/financial-documents/press-release-archive/microstrategy-announces-over-1b-in-total-bitcoin-purchases-in- 2020.pdf

3, https://www.microstrategy.com/content/dam/website-assets/collateral/financial-documents/press-release-archive/MicroStrategy-Announces-Pricing-of-Offering-of-Convertible-Senior-Notes_02- 17-2021.pdf

4, https://www.microstrategy.com/content/dam/website-assets/collateral/financial-documents/press-release-archive/microstrategy-acquires-additional-19452-bitcoins-for-1-026-billion_02- 24-2021.pdf

5, https://www.microstrategy.com/content/dam/website-assets/collateral/financial-documents/press-release-archive/microstrategy-announces-pricing-of-offering-of-senior-secured-notes_06- 08-2021.pdf

6, https://www.microstrategy.com/content/dam/website-assets/collateral/financial-documents/press-release-archive/microstrategy-acquires-additional-bitcoins-and-now-holds-over-105000- bitcoins-en-tout_21-06-2021.pdf

7, https://www.microstrategy.com/en/investor-relations/press/microstrategy-announces-third-quarter-2021-financial-results

8, https://www.microstrategy.com/content/dam/website-assets/collateral/financial-documents/press-release-archive/microstrategy-announces-third-quarter-2021-financial-results_10-28-2021. PDF