Michael Saylor is founder and CEO, one of the longest tenured software execs in the country. MIT grad with a unique mind.
Microstrategy (MSTR) does mostly “business intelligence” software. I don’t really know what that is. They generate $30M+ in free cash flow a year and have little to no debt. Saylor owns enough voting stock I think he can mostly do what he wants
so he announced earlier in the year that he was looking at alternatives for the company’s cash reserves describing their USD cash pile as a melting ice cube. Subsequently made tender offer to buy out shareholders that didn’t like the direction then company was looking to go
theyve gone on to buy over 40,000 bitcoin and the stock pretty much went parabolic as bitcoin has gone on a tear
then in a real boss move Saylor announced a private offering of $400M in convertible notes, basically an offer to institutional investors to lend them money, with an option to convert to equity, which was completed and optioned up to $650M. At an interest rate of 0.75%.
so, leveraging up to presumably buy more bitcoin
if nothing else it’s pretty fascinating.
Saylor is wealthy and it’s fair to say this isn’t really risk for him. But he’s sure putting his money where is mouth is and so far it’s paid off for him and shareholders that stuck with him
Microstrategy (MSTR) does mostly “business intelligence” software. I don’t really know what that is. They generate $30M+ in free cash flow a year and have little to no debt. Saylor owns enough voting stock I think he can mostly do what he wants
so he announced earlier in the year that he was looking at alternatives for the company’s cash reserves describing their USD cash pile as a melting ice cube. Subsequently made tender offer to buy out shareholders that didn’t like the direction then company was looking to go
theyve gone on to buy over 40,000 bitcoin and the stock pretty much went parabolic as bitcoin has gone on a tear
then in a real boss move Saylor announced a private offering of $400M in convertible notes, basically an offer to institutional investors to lend them money, with an option to convert to equity, which was completed and optioned up to $650M. At an interest rate of 0.75%.
so, leveraging up to presumably buy more bitcoin
if nothing else it’s pretty fascinating.
Saylor is wealthy and it’s fair to say this isn’t really risk for him. But he’s sure putting his money where is mouth is and so far it’s paid off for him and shareholders that stuck with him
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