MicroStrategy cofounder Michael Saylor recently shared with Bloomberg that the firm is set to revamp its fundraising strategy to implement more “intelligent” leverage. This shift comes in the wake of the company’s ambitious plan to raise $42 billion over three years, a target that is already looking achievable far sooner than anticipated.
Back in October, MicroStrategy faced uncertainty regarding how receptive the capital markets would be to their fundraising efforts. Saylor expressed his astonishment at the positive response, noting, “When we announced that, it wasn’t clear how enthusiastic the capital markets would be, but we got a very enthusiastic reception.” Clearly, the company is riding a wave of unexpected enthusiasm, allowing it to progress quicker than planned.
Saylor emphasized that MicroStrategy will mainly focus on raising funds through fixed-income markets as it works toward its fundraising goal. Once that target is met, the company plans to reassess its capital plan. He pointed out that future fundraising will be “subject to market conditions at the time,” indicating a flexibility in approach based on the economic environment.
The cofounder stated, “We’re always considering is that the convertible market? Is it the fixed-income market, or is it the equity market we want to go to?” He believes that over time, the company’s fundraising strategy will favor fixed-income opportunities, particularly as they move into the first quarter.
Currently, Saylor indicated that the company is in a more deleveraged position while aspiring to utilize additional leverage in the future. This strategic shift is not without its milestones; recently, MicroStrategy achieved a notable victory by being added to the Nasdaq-100 index, a significant achievement that underscores its evolving stature in the tech sector.
Saylor proudly noted, “We have a very healthy software division now, and we’re very proud of it. And I did create it. But we also think of ourselves primarily as a Bitcoin Treasury company now.” This statement captures MicroStrategy’s strategic pivot, channeling its identity toward becoming a leader in Bitcoin acquisitions and treasury management.
In short, MicroStrategy’s evolving fundraising strategy reflects not just the company’s commitment to innovation but also a shrewd understanding of market dynamics. With a clear focus on leveraging opportunities in fixed-income markets, the future looks promising for Saylor and his team.
