Bitcoin enthusiast Michael Saylor, co-founder and Chairman of MicroStrategy, has openly expressed his desire to assist President-elect Donald Trump with matters concerning cryptocurrency. Saylor’s commitment to enhancing intelligent leverage for the company’s shareholders reflects his ongoing mission in the competitive crypto landscape.
In a recent appearance on Bloomberg Television, Saylor shared that MicroStrategy boasts an impressive $7.2 billion in convertible securities, whereby around $4 billion can effectively be viewed as equity due to advantageous trading conditions. He pointed out, “They are trading with a delta of approximately 100%, looking like equity,” highlighting the close relationship between these convertible bonds and the performance of the company’s stock.
MicroStrategy has made remarkable strides this year, aiming to amass $42 billion solely for the purpose of Bitcoin acquisition. Remarkably, the company’s shares have skyrocketed nearly 500% in 2024, significantly surpassing Bitcoin’s 150% gain over the same timeframe. This surge is predominantly attributed to the firm’s regular announcements of multi-billion-dollar Bitcoin buys, consistently executed every Monday for the past six weeks. Such proactive measures have not only boosted MicroStrategy’s stock but have also raised essential questions about the sustainability of its bold investment strategies.
The interest in the firm’s fixed-income securities has attracted hedge funds eager to exploit convertible arbitrage—an approach where investors buy bonds while simultaneously short-selling the underlying shares. This demand has enabled MicroStrategy to issue an astounding $6.2 billion in convertibles this year, enhancing its financing capabilities significantly.
Despite some skepticism surrounding its investment tactics, MicroStrategy has seen its market capitalization soar beyond $90 billion, which led to its inclusion in the Nasdaq 100 Index. This development could potentially spark over $2 billion in stock purchases from funds that monitor this technology benchmark index.
During the same interview, Saylor signaled his readiness to engage with Trump’s administration, expressing an openness to serve on an advisory council focused on digital asset policies. This follows the recent appointment of David Sacks, a former PayPal executive, as the first-ever White House AI & Crypto Czar. Saylor stated he would welcome the opportunity to contribute to discussions regarding forward-thinking digital asset regulations.
As previously highlighted by Bitcoinist, this advisory role aims to oversee the creation of government policies that address both artificial intelligence and crypto. This initiative aligns with Trump’s commitment to reforming the U.S. crypto regulations, fostering an environment that promotes industry growth. Trump noted, “He will work on a legal framework so the crypto industry gets the clarity it has been asking for and can thrive in the US.”
As interest in the broader crypto market continues to grow, the total market cap has reached an impressive $3.44 trillion, underscoring the burgeoning potential for cryptocurrencies like Bitcoin. Michael Saylor’s proactive engagement with political leaders reflects a desire to shape a future where digital assets can thrive, bringing excitement to many stakeholders in the industry.
