MSTR Dives 25% Amid BTC Plans

CRYPTO
MSTR Dives 25% Amid BTC Plans

MicroStrategy has completed a $3 billion offering of 0% convertible senior notes due December 2029, marking a major step in its ambitious plan to raise $42 billion over three years to acquire more Bitcoin. The notes, sold at a 55% premium with a strike price of $672, offer no regular interest payments, maturing to face value if not converted before the due date. As senior debt, they take precedence over common stock in bankruptcy or liquidation scenarios.

If the entire $3 billion is allocated, MicroStrategy could acquire approximately 30,600 Bitcoin, further solidifying its position as the largest Bitcoin holder among public companies, with 331,200 BTC worth over $32.7 billion. This aligns with its “21/21” strategy to secure $21 billion in equity and $21 billion in fixed-income securities.

However, MSTR shares dropped 25% on Nov. 21 to $397.28 amid Citron Research’s short position, citing overvaluation. Despite the dip, MSTR remains a top performer in 2024, up 480% year-to-date, and contributed to a record $70 billion trading volume driven by Bitcoin-related assets. Bitcoin itself trades near $98,423, approaching the $100,000 milestone.
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CRYPTO
Bitcoin Nears $100K Amid Gensler Exit

Bitcoin is on the verge of hitting $100,000, following an unprecedented rally fueled by recent political and regulatory shifts. Just weeks after surpassing $80,000, Bitcoin reached a new high of $98,831, with analysts predicting it could cross six figures by year-end. The surge coincides with the announcement that SEC Chair Gary Gensler will step down when Donald Trump takes office on January 20.

Gensler, a staunch crypto critic under the Biden administration, oversaw aggressive enforcement actions against companies like Coinbase and Ripple. His resignation was celebrated by the crypto community, which anticipates more favorable regulation under the Trump administration. Reports suggest Trump’s team is considering creating a White House role dedicated to cryptocurrency policy, potentially giving the industry a direct line to the presidency.

Analysts see Bitcoin’s milestone as validation of its legitimacy as a store of value. “It’s a huge milestone,” said Kaiko’s Adam McCarthy, emphasizing its significance for the crypto market’s future.
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TECH
Mystery Buyers Drive Nvidia Revenue

Three mystery buyers have collectively spent over $10 billion each on Nvidia's AI chips this year, driving a significant portion of the company's revenue. These unnamed customers, referred to as "Customers A, B, and C" in Nvidia’s filings, accounted for more than a third of its $35.1 billion revenue for the fiscal third quarter. Each purchased roughly 12% of Nvidia’s global consolidated turnover, likely limited by supply constraints rather than demand.

Analysts speculate these buyers include tech giants like Microsoft and Meta, but Nvidia has kept their identities secret for competitive reasons. The heavy dependence on a few customers presents a unique risk, yet Nvidia's CEO, Jensen Huang, believes the AI chip market, especially for data centers, will continue growing toward a potential $1 trillion.

Supply challenges persist, as Nvidia relies on Taiwan's TSMC for chip fabrication. Whether these buyers are middlemen or end users remains unclear, fueling further industry intrigue.
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Word of the day
Tenacious

Something described as tenacious cannot easily be stopped or pulled part; in other words, it is firm or strong. Tenacious can also describe something—such as a myth—that continues or persists for a long time, or someone who is determined to do something.

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