Whenever Michael Saylor mentions “bitcoin,” MicroStrategy shares experience a surge. Lately, his mentions have become frequent.

MicroStrategy’s Bitcoin Acquisition

On Monday, MicroStrategy’s founder took to social media platform X to announce the purchase of an additional 12,000 bitcoins, amounting to nearly $822 million. This acquisition, funded through convertible notes and surplus cash, elevates MicroStrategy’s bitcoin holdings to 205,000 bitcoins, valued at over $15 billion. Meanwhile, the cryptocurrency market keeps achieving new peaks, with Bitcoin climbing 2.7% on Wednesday, surpassing $73,400.

MicroStrategy’s Stock Performance

Functioning primarily as a bitcoin proxy despite its software development business, MicroStrategy saw its stock surge by 11% on Wednesday, following a series of consecutive gains. Since March 6, the stock has soared by 68%, reaching a staggering 180% increase for the year, building upon a remarkable 346% surge in 2023.

Saylor’s Bitcoin Optimism

In an interview with CNBC’s “Squawk Box” on Monday, Saylor expressed his conviction that bitcoin will outshine gold as an investment asset. Anticipating increased institutional adoption, especially with the inclusion of bitcoin in exchange-traded funds, Saylor remains bullish on the forthcoming halving process, expected to curb coin supply and reduce selling pressure.

MicroStrategy’s Financing Strategy

MicroStrategy disclosed the completion of a convertible notes offering on Monday, generating approximately $782 million in net proceeds. Analysts from Canaccord Genuity noted this as the first instance of an $800 million convert due in 2030 with a coupon rate below 1% and a substantial conversion premium. The company utilized these funds to further bolster its bitcoin holdings.

MicroStrategy’s Bitcoin Accumulation

Since the beginning of the year, MicroStrategy has acquired close to 16,000 bitcoins, showcasing its continued commitment to cryptocurrency investment. Interestingly, the appreciation of its stock value has outpaced the growth of its bitcoin reserves, with Canaccord’s analysis indicating a significant equity value premium over its bitcoin holdings.

MicroStrategy’s Evolution and Growth

Established in 1989, MicroStrategy initially focused on enterprise software and cloud-based services. However, its shareholder value is now heavily influenced by its bitcoin ownership. In mid-2020, the company unveiled its intention to invest in bitcoin, marking a strategic shift that has significantly boosted its market capitalization, which now stands at $30 billion.