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MicroStrategy files to sell $1 billion in shares to add to its vast bitcoin treasure chest

GettyImages 1321733384
MicroStrategy boss, Michael Saylor.
  • MicroStrategy filed to sell as much as $1 billion in shares on Monday, partly to buy more bitcoin.
  • Led by CEO Michael Saylor, it already holds 92,079 bitcoins, currently valued at $3.6 billion.
  • The company also said it has completed its $500 million bond sale for its bitcoin strategy.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Bitcoin bull Michael Saylor's MicroStrategy plans to sell as much as $1 billion in common shares with an eye to adding to its huge holding in the cryptocurrency, it said in a filing with the Securities and Exchange Commission.

The S-3 filing for a "shelf offering" on Monday came as the business-intelligence software maker completed the sale of $500 million in high-yield senior secured notes, offered so it could buy more bitcoin.

MicroStrategy said it may decide to sell $1 billion in shares in the shelf offering, which allow a company to issue securities to the public multiple times over a period, based on market conditions. It intends to use the proceeds for general corporate purposes, including additional investment in bitcoin, but has not decided how much to put toward any particular purpose, it said.

Under the leadership of CEO Michael Saylor, one of the most vocal bitcoin proponents, MicroStrategy had purchased more than 92,000 bitcoins even before these moves. That hoard is currently valued at $3.6 billion, making the company the largest corporate holder of the digital asset. A newly formed subsidiary, MacroStrategy, is holding the bitcoin, MicroStrategy said in a statement.

Shares in MicroStrategy were last trading 1% higher during Tuesday's pre-market session. Bitcoin was trading 2% higher around $40,000 as of 6:30 a.m. ET, but it is down more than 36% in the last two months.

Saylor has previously said he influenced Tesla, the second-largest corporate bitcoin holder, to invest $1.5 billion in the digital currency. The MicroStrategy chief is the leading light in the recently formed Bitcoin Mining Council, a group of North American crypto miners dedicated to tackling the issue of the industry's carbon footprint and improving sustainable mining practices.

Read More: Goldman Sachs says buy these 37 stocks that will offer strong returns with minimal risk through year-end as growth names regain leadership

Read the original article on Business Insider

MicroStrategy files to sell $1 billion in shares to add to its vast bitcoin treasure chest

GettyImages 1321733384
MicroStrategy boss, Michael Saylor.
  • MicroStrategy filed to sell as much as $1 billion in shares on Monday, partly to buy more bitcoin.
  • Led by CEO Michael Saylor, it already holds 92,079 bitcoins, currently valued at $3.6 billion.
  • The company also said it has completed its $500 million bond sale for its bitcoin strategy.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Bitcoin bull Michael Saylor's MicroStrategy plans to sell as much as $1 billion in common shares with an eye to adding to its huge holding in the cryptocurrency, it said in a filing with the Securities and Exchange Commission.

The S-3 filing for a "shelf offering" on Monday came as the business-intelligence software maker completed the sale of $500 million in high-yield senior secured notes, offered so it could buy more bitcoin.

MicroStrategy said it may decide to sell $1 billion in shares in the shelf offering, which allow a company to issue securities to the public multiple times over a period, based on market conditions. It intends to use the proceeds for general corporate purposes, including additional investment in bitcoin, but has not decided how much to put toward any particular purpose, it said.

Under the leadership of CEO Michael Saylor, one of the most vocal bitcoin proponents, MicroStrategy had purchased more than 92,000 bitcoins even before these moves. That hoard is currently valued at $3.6 billion, making the company the largest corporate holder of the digital asset. A newly formed subsidiary, MacroStrategy, is holding the bitcoin, MicroStrategy said in a statement.

Shares in MicroStrategy were last trading 1% higher during Tuesday's pre-market session. Bitcoin was trading 2% higher around $40,000 as of 6:30 a.m. ET, but it is down more than 36% in the last two months.

Saylor has previously said he influenced Tesla, the second-largest corporate bitcoin holder, to invest $1.5 billion in the digital currency. The MicroStrategy chief is the leading light in the recently formed Bitcoin Mining Council, a group of North American crypto miners dedicated to tackling the issue of the industry's carbon footprint and improving sustainable mining practices.

Read More: Goldman Sachs says buy these 37 stocks that will offer strong returns with minimal risk through year-end as growth names regain leadership

Read the original article on Business Insider

MicroStrategy files to sell $1 billion in shares to add to its vast bitcoin treasure chest

GettyImages 1321733384
MicroStrategy boss, Michael Saylor.
  • MicroStrategy filed to sell as much as $1 billion in shares on Monday, partly to buy more bitcoin.
  • Led by CEO Michael Saylor, it already holds 92,079 bitcoins, currently valued at $3.6 billion.
  • The company also said it has completed its $500 million bond sale for its bitcoin strategy.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Bitcoin bull Michael Saylor's MicroStrategy plans to sell as much as $1 billion in common shares with an eye to adding to its huge holding in the cryptocurrency, it said in a filing with the Securities and Exchange Commission.

The S-3 filing for a "shelf offering" on Monday came as the business-intelligence software maker completed the sale of $500 million in high-yield senior secured notes, offered so it could buy more bitcoin.

MicroStrategy said it may decide to sell $1 billion in shares in the shelf offering, which allow a company to issue securities to the public multiple times over a period, based on market conditions. It intends to use the proceeds for general corporate purposes, including additional investment in bitcoin, but has not decided how much to put toward any particular purpose, it said.

Under the leadership of CEO Michael Saylor, one of the most vocal bitcoin proponents, MicroStrategy had purchased more than 92,000 bitcoins even before these moves. That hoard is currently valued at $3.6 billion, making the company the largest corporate holder of the digital asset. A newly formed subsidiary, MacroStrategy, is holding the bitcoin, MicroStrategy said in a statement.

Shares in MicroStrategy were last trading 1% higher during Tuesday's pre-market session. Bitcoin was trading 2% higher around $40,000 as of 6:30 a.m. ET, but it is down more than 36% in the last two months.

Saylor has previously said he influenced Tesla, the second-largest corporate bitcoin holder, to invest $1.5 billion in the digital currency. The MicroStrategy chief is the leading light in the recently formed Bitcoin Mining Council, a group of North American crypto miners dedicated to tackling the issue of the industry's carbon footprint and improving sustainable mining practices.

Read More: Goldman Sachs says buy these 37 stocks that will offer strong returns with minimal risk through year-end as growth names regain leadership

Read the original article on Business Insider

Bitcoin surges near $40,000 after Elon Musk says Tesla will resume crypto payments when mining is cleaner

Elon Musk with a bitcoin symbol
  • Bitcoin jumped above $39,000 after Elon Musk suggested Tesla might accept it as payment again.
  • Musk said he'll do it when there's proof of about 50% of mining energy used is clean.
  • Tesla halted bitcoin payments last month over concern its mining process is damaging to the environment.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Bitcoin traded above $39,000 for a second day on Monday after Elon Musk tweeted Tesla would accept payment in cryptocurrency again once mining can be done using cleaner energy.

"When there's confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions," the billionaire said in a tweet.

He was responding to a Cointelegraph report that quoted Magda Wierzycka, a South African billionaire businesswoman and CEO of asset manager Sygnia, saying that Musk's bitcoin-related tweets should have led to a regulatory investigation.

According to Wierzycka, Musk deliberately pumped up bitcoin's value and then sold a chunk of his exposure at its peak. But the Tesla boss disputed this claim, saying "Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market."

Elon Musk tweet on resuming bitcoin payments.

Bitcoin was last trading 11% higher around $39,530 on Monday as of 3:20 a.m. ET, and is up 36% so far this year.

"The charts suggest consolidation followed by a rally through $41,000 targets further gains to around $44,000," Jeffrey Halley, a senior market analyst at OANDA, said.

Musk revealed in February his electric car company invested $1.5 billion in bitcoin and that it would start accepting it as payment for its vehicles. Barely three months later, Tesla made a U-turn and stopped payment in bitcoin because of how energy-intensive the mining process is.

"We are concerned about the rapidly increasing use of fossil fuels for bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel," Musk said in a tweet at the time.

It isn't clear yet how Musk will gather data to assess bitcoin's clean energy use. But he previously suggested that the cryptocurrency can rid itself of its negative environmental image if top miners prove they're using greener energy by posting audited data on renewables used.

Read More: Founders of a leading crypto brokerage lay out a thesis for why ether looks 'very cheap' while providing a more conservative case for bitcoin - and share 2 ETH challengers to watch

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2 of the biggest hedge fund victims of GameStop’s short-squeeze suffered more losses in May, report says

AMC and GameStop

US hedge funds Melvin Capital and Light Street Capital, two short sellers hurt by the GameStop day-trader rebellion earlier this year, saw further declines in May, the Financial Times reported on Thursday.

New York-based Melvin, which lost more than 50% in January over its short positions on GameStop, lost another 4% last month, the report said, citing sources. That brings its overall losses so far this year to about 45%.

Meme stock short-sellers have continued to be squeezed as retail investors remain bullish on popular names like Bed Bath & Beyond, AMC, BlackBerry, and Clover Health. Total hedge fund losses from betting against this pack of stocks amount to $6 billion since the start of May, the FT said, citing data from Ortex Analytics.

At the start of the year, a number of short-sellers lost over $5 billion as Reddit traders formed a snowballing momentum trade that caused GameStop shares to skyrocket. Shorting a stock means an investor is betting a company's share price will fall. The opposite of this is "going long," which reflects a belief the price will rise.

Although the value of Melvin's assets fell $4.5 billion in January from the end of 2020, they have since recovered to $11 billion as of June 1, the FT reported. The fund closed out all of its public short positions, including GameStop and AMC, in the first three months of the year. But it could still have some traditional short positions that aren't required to be publicly disclosed.

Other funds with extended losses include Palo Alto-based Light Street Capital, founded by Glen Kacher, who started his career at billionaire Julian Robertson's famous fund, Tiger Management.

Light Street, which had about $3.3 billion in assets under management at the start of the year, was hit by losses on short positions in the first-quarter, the FT said. After losing a further 3% in May, its flagship fund is now down more than 20% this year.

Melvin Capital declined to comment on FT's report, while Light Street could not be contacted.

Read the original article on Business Insider

10 things you need to know before the opening bell

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Welcome to 10 Things Before the Opening Bell. Sign up here to get the day's top stock and crypto news in your inbox every morning.

Sign up for Insider Investing for your weekly markets analysis.

1. S&P 500 futures hover at record high as investors shrug off surging inflation. See what markets are doing today.

2. The Bitcoin Mining Council kicks off with MicroStrategy's boss at the helm. But Elon Musk, who suspended bitcoin payments for Tesla over climate concerns, won't be part of the forum.

3. AMC insiders cash in another $4.8 million worth of shares. Company execs and board members have taken home about $13 million in the past two weeks alone.

4. BlackRock's Rieder says the Fed should pull back as inflation runs hot. The central bank will be better served fulfilling its mandate if it begins discussing tapering, he said.

5. Reddit co-founder Alexis Ohanian said meme stocks are here to stay. He also discussed cryptocurrency regulation, and his new VC firm 776, which plans to raise $150 million.

6. Finance professor Aswath Damodaran warns investors not to get cocky. Here are some highlights from his new interview.

7. On the economic calendar. The Baker Hughes US oil rig count and CFTC gold net positions are due.

8. The CEO of crypto exchange Kraken breaks down why he stands by his $200,000 year-end price target for bitcoin. Jesse Powell also shares 5 tokens that intrigue him.

9. Morningstar lays out the 10 highest-conviction bets being made by US stock-pickers right now. The firm also shares 4 Big Tech names that look cheap.

10. The CIO at a digital asset hedge fund that returned 373% in 2020 breaks down why bitcoin's sell-off is in its final stages. Jeff Dorman also shares why ether could triple from current levels.

Read the original article on Business Insider

10 things you need to know before the opening bell

Traders work on the floor of The New York Stock Exchange

Welcome to 10 Things Before the Opening Bell. Sign up here to get the day's top stock and crypto news in your inbox every morning.

Sign up for Insider Investing for your weekly markets analysis.

1. Tech stock futures slip as investors brace for a jump in inflation. See what markets are doing today.

2. China arrested over 1,100 suspects in a crypto-related money-laundering crackdown. Criminal clients paid up to 5% commission for the conversion of dirty money into crypto, a ministry said.

3. Reddit traders have scared away bears from meme-stocks. The tally of stocks with high short interest has diminished from mid-January when the GameStop frenzy began.

4. Chamath Palihapitiya's SPACs will offer retail investors a way into their IPOs. 5% of shares in the companies would be made available on SoFi's trading platform.

5. SEC's Hester Pierce worries stricter US rules will hurt the crypto market. She isn't sure new guidelines could be good for innovation.

6. Earnings expected. Chewy is due to report Q1 results.

7. On the data docket. The US consumer price index, continuing jobless claims, 4-week bill auction, and the 30-year bond auction are due.

8. Forget bitcoin and other hypervolatile cryptocurrencies. For everyday transactions, the future of money is stablecoins.

9. The CEO of investment-research firm Fintel built a tool to help retail investors identify opportunities. Wilton Risenhoover shares 20 heavily shorted stocks primed for a squeeze.

10. Gerry Frigon's stock fund has soared nearly 700% in 14 years. Here's what he's buying to bring his clients another decade of outsized profits.

Read the original article on Business Insider

Global stocks hover below record highs ahead of US inflation data, while oil falls for a 2nd day as demand optimism fades

Traders work on the floor of the New York Stock Exchange (NYSE)

Global stocks mostly edged lower on Tuesday as investors remained focused on inflation data, with the US consumer price index report due on Thursday.

Futures on the Dow Jones, S&P 500, and Nasdaq fell 0.1%, indicating a slightly lower start to trading later in the day.

The S&P index was still less than a quarter of a percent away from its all-time closing high a month ago, Deutsche Bank strategists said.

Biotech stocks added 1.13% to the Nasdaq the previous day, driven primarily by a record 38% jump in Biogen's closing price after the company received FDA approval for its new drug to treat Alzheimer's.

The growth rate of weekly COVID-19 cases is currently at its slowest since mid-March, according to Deutsche Bank. Cases in the US are rising at their slowest pace since March 2020, while India reported fewer than 100,000 daily cases for the first time in over two months. Numbers in the UK, however, have jumped 53% compared to last week, as the Delta variant spreads.

"While we remain alert to inflation risks, we believe the backdrop remains benign for stocks - with benefits most obvious for cyclical parts of the market, including energy and financials," Mark Haefele, chief investment officer at UBS Global Wealth Management, said.

Separately, lower commodity prices weighed on European stocks with basic resources declining 1.6% and energy down 0.25%, while auto stocks rose 0.8% and consumer products added 0.7%.

London's FTSE 100 rose 0.2%, the Euro Stoxx 50 rose 0.0.7%, and Frankfurt's DAX fell 0.1%.

Bitcoin traded 9% lower on Tuesday, while ethereum and dogecoin dropped more than 10%. The main cause behind this most recent crypto sell-off is unclear, but one theory suggests that US federal officials recovering a majority of the ransom Colonial Pipeline paid to a hacker group shows the digital asset can still come under official control.

President Joe Biden is expected to discuss cryptocurrencies at the G7 summit in the UK's coastal county of Cornwall this weekend.

"Cryptos face an existential threat from major economies regulating or banning them," said Jeffrey Halley, a senior market analyst at OANDA. "China has started, and the wolves are circling. The Colonial Pipeline saga was a case of flying too close to the sun. Attacks on critical infrastructure will not go unnoticed by important and powerful people."

Asian equities mostly traded flat or lower. "In general, commodity-related sectors like materials and energy are leading the underperformance," Deutsche Bank said.

The Shanghai Composite fell 0.5%, Tokyo's Nikkei fell 0.2%, and Hong Kong's Hang Seng fell 0.1%.

Oil prices retreated from highs as Brent crude fell 0.7% to $70.96, and West Texas Intermediate fell 0.6% to $68.75 per barrel.

"The price action has all the hallmarks of a very long speculative market getting nervous at the highs and is not indicative of an overall change in sentiment for energy," Halley said.

"With some improvement in the pandemic situation in India and the recovery in the US, China and Europe remaining on track, oil should remain a buy on dips, with no warning signs coming from the technical momentum indicators," he said.

Read More: UBS handpicks 7 real estate stocks to own in the post-pandemic world as they benefit from major changes brought on by the ongoing economic reopening

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Billionaire Chamath Palihapitiya once blasted a prospective Virgin Galactic investor for questioning his track record – and called him a ‘complete f—ing idiot’

Chamath Palihapitiya

Chamath Palihapitiya once blasted an older man for challenging the billionaire's track record and projections for his first blank-check company deal, Virgin Galactic, according to a report published Monday by The New Yorker.

While he was pitching the company's prospects to investors in 2019, the Social Capital CEO met a bunch of mutual-fund managers in New York. He delivered an impressive speech about helping mankind reach the stars with the spaceflight company, and underlined how it could change the world.

Chamath is the chairman of Virgin Galactic. He failed to include that millions had gone up in smoke for the company after it spent heavily to ready its spaceships, and that it had missed every self-imposed deadline in its 15-year history, the New Yorker's Charles Duhigg wrote.

A conservatively-dressed older attendee present in the audience cut into the billionaire's speech, questioning his proclamations, the report said. After allowing him to sound off for a while, Palihapitiya retorted with: "You're a complete f---ing idiot."

Astonished, the older gentleman had no response as the "SPAC King" laid into him. "Have you even looked at the prospectus? Did you even f---ing Google me before you came in here?"

More wide-eyed attendees were waiting in silence to see how the situation would end. "How lazy are you?" Palihapitiya said. "I don't even want your f---ing money."

Read More: The Archegos scandal is making banks rethink their ties to the secretive world of family offices. Industry insiders told us why the days of easy deals are gone for the $6 trillion sector.

But soon after, his remarks were met with laughter as everyone aged under 50 began smiling broadly. "It was brilliant," one attendee told the New Yorker. "It was completely calculated. That old guy wasn't ever gonna invest in space tourism. But the other people in the room - they loved it!"

About 50% of the group called the billionaire's office later to declare they wanted to support the Virgin Galactic investment, the report said.

"People either love Chamath or they hate him, and that's fantastic, because polarization gets attention," the attendee was reported saying. "Polarization gets you on CNBC, it gets you Twitter followers, it gets you a megaphone. If you believe that Chamath can get an hour on CNBC to explain Virgin Galactic, then you want to buy into this deal, because attention is money."

He and his business partner Ian Osborne indirectly own millions of shares in the space-tourism company via their investment vehicle, SCH Sponsor Corp.

Social Capital didn't immediately respond on behalf of its CEO Chamath Palihapitiya to Insider's request for comment.

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Bitcoin is the ‘apex predator’ of digital currencies – and dogecoin may be the crypto equivalent of silver, hedge fund manager Anthony Scaramucci says

Anthony Scaramucci
Anthony Scaramucci.
  • Anthony Scaramucci called bitcoin the "apex predator" of digital currencies.
  • Dogecoin may be the silver to bitcoin's gold, the hedge fund manager said.
  • He said he advises people to hold between 1% to 3% of bitcoin within their portfolios.
  • See more stories on Insider's business page.

Anthony Scaramucci, founder of investment firm SkyBridge Capital, defended bitcoin's decline and said he advises investors to hold some amount of it as it's the only cryptocurrency that's achieved "escape velocity."

Although other digital currencies have been gaining in popularity, bitcoin has managed to "maintain its supremacy as the apex predator in digital currency," he said in a Bloomberg interview.

Bitcoin was last trading 7% lower on the day at around $45,700. It hit an all-time high near $65,000 in mid-April, but has lost momentum since and is now only up 57% so far this year. The digital asset was hit hard last week after Elon Musk cited climate-related concerns over its mining process and suspended bitcoin payments for Tesla.

Scaramucci, known for his infamously short stint as White House Director of Communications in the early days of Donald Trump's presidency, has backed bitcoin for being a potential store of value compared to the US dollar. He says it would be responsible for him to advise clients to hold between 1-3% of the cryptocurrency in their portfolios.

"I'm not telling them you've got to own 100% of your net worth in it - but if we're right, you don't want to be missing out on this," he told Bloomberg.

Read More: 'Wolf of All Streets' crypto trader Scott Melker breaks down his strategy for making money using 'HODLing' and 100-times trade opportunities - and shares 5 under-the-radar tokens he thinks could explode

Ethereum's ether, which is trading around $3,480, is also in the process of achieving escape velocity now that major changes are coming to its blockchain, he said.

Escape velocity - a term usually used in physics - suggests that if there is a 20% chance that bitcoin hits $400,000 and an 80% chance that it goes to zero, it is still underpriced at any price below $80,000.

Dogecoin was trading 3% lower at 50 cents on Monday. Musk has been actively supporting the meme-inspired cryptocurrency, while criticizing bitcoin.

Scaramucci said dogecoin, which is now the fifth-largest cryptocurrency by market capitalization, may just be the silver to bitcoin's gold. "This is happening. This is upon us right now - you either get it or you don't get it," he said. Typically, silver is a lot more volatile than gold, but tends to respond to similar market catalysts.

Read the original article on Business Insider