The Bitcoin Business Newsletter | Profitable Bitcoin Equity Raises
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Key insight
This week's key insight focuses on equity financing for bitcoin purchases and the bitcoin per share metric.
Normally, when a company raises equity for financing, it is typically dilutive as each shareholder now owns a smaller percentage of the total outstanding shares. However, companies raising equity specifically to purchase bitcoin are experiencing an unusual phenomenon: the equity raise becomes accretive. This occurs because bitcoin's high performance and exceptional returns outpace the equity dilution, i.e. bitcoin's value appreciates faster than the shares dilute.
This strategy has proven highly profitable for shareholders, as demonstrated by companies like Metaplanet and MicroStrategy. Companies implementing these Bitcoin treasury strategies are significantly outperforming their peers. MicroStrategy, for example, is currently making around $500 million daily from their bitcoin holdings, making them arguably one of the most valuable companies in the world.
This shift transforms the traditional focus on earnings per share to a new metric: bitcoin per share. The key question for the future becomes: how much bitcoin do you own? In other words, what portion of this digital capital—this global reserve currency—belongs to you?
As an individual investor, one cannot generate funds through public market share offerings or secure financing through convertible securities at virtually zero interest rates. These advantages remain exclusive to the domain of established corporate entities. But if you have a business, the best you can do is copy MicroStrategy.
MicroStrategy exemplifies this shift of the corporate sphere through their uncommonly innovative performance metric: BTC Yield. According to their September 20th 8-K form, "The Company uses BTC Yield as a KPI to help assess the performance of its strategy of acquiring bitcoin in a manner the Company believes is accretive to shareholders."
The corporation has masterfully leveraged its position as a multi-billion dollar publicly traded entity, capitalizing on access to both low-cost debt financing and the capability to issue additional equity. This sophisticated performance indicator reveals their success in accumulating an increasing quantity of BTC per outstanding share, even while engaging in traditionally dilutive capital-raising activities.
Top News Stories
Brazilian Lawmakers Propose Sovereign Bitcoin Reserve
Brazil proposes RESBit, a Bitcoin reserve to bolster sovereign assets, support its CBDC, and strengthen financial resilience.
Suriname's Presidential Hopeful Vows to Make Bitcoin Legal Tender – Bitbo
Maya Parbhoe aims to eliminate corruption in Suriname by adopting a Bitcoin standard and dismantling the country's existing financial system.
Marathon Claims Bitcoin Blockspace is A Strategic Asset for U.S. Security – Bitbo
The company claims the U.S. must prioritize Bitcoin reserves and mining dominance to safeguard economic and national security amid global de-dollarization trends.
MicroStrategy Purchases an Additional $5.4 Billion Worth of Bitcoin
MicroStrategy raised its Bitcoin holdings to 386,700 Bitcoin with a $5.4B purchase, reflecting confidence in its growth.
Rumble To Allocate up to $20M for Bitcoin as Part of New Treasury Plan
Rumble plans to invest up to $20M in Bitcoin, citing its long-term potential.
Vancouver Mayor Explores Bitcoin Adoption for City Policy
Vancouver Mayor Ken Sim is considering Bitcoin as a reserve asset, with a motion to be presented on December 11th.
Blockchain Association Urges Trump to Replace SEC, IRS Leaders – Bitbo
The Blockchain Association has called on Trump to overhaul leadership at the SEC, IRS, and Treasury to create a pro-Bitcoin regulatory environment.
US Bitcoin ETFs Surpass $30 Billion in Inflows – Bitbo
U.S. spot Bitcoin ETFs have reached $30.35 billion in cumulative inflows as Bitcoin trades near $100,000.
Trump Taps Pro-Bitcoin Hedge Fund Manager for Treasury Secretary – Bitbo
Scott Bessent, a cryptocurrency advocate, has been selected by Donald Trump as his pick for Treasury Secretary.
Texas Explores Strategic Bitcoin Reserve Legislation – Bitbo
Texas lawmakers are initiating discussions about establishing a strategic Bitcoin reserve, with advocacy from the Satoshi Action Fund highlighting its potential benefits.
Newmarket Capital Launches Battery Finance, Bitcoin-Collateralized Loan Strategy
Battery Finance enables borrowers to use bitcoin as collateral for loans — without marking it to market — as a means to bring forward bitcoin’s value.
Semler Scientific® Announces BTC and ATM Activity Raised $21.5 million; Purchased Additional 215 BTC; Now Holds 1,273 BTC with BTC Yield of 37.3%
/PRNewswire/ -- Semler Scientific, Inc. (Nasdaq: SMLR), a pioneer in developing and marketing technology products and services to healthcare providers to...
Other Noteworthy News
⚡Japanese energy and automotive firm Remixpoint to allocate over ¥500M ($3.2M) in Bitcoin
🔴Namecheap surpasses $73 million in bitcoin payments
🟡$9 Trillion Charles Schwab to get into Spot #Bitcoin and crypto ETF sales - Bloomberg
📙700 students learning about bitcoin in Indonesia
📈Legendary Pizza's from BTC's 1st Transaction Worth Nearly $1 Billion
💥Bitcoin Boosts MicroStrategy (MSTR) to Higher Trading Volume Than Tesla and Nvidia
🌋El Salvador Considers Renting Volcanoes for Bitcoin Mining
📜Chris Giancarlo Frontrunner for Potential Trump Crypto Policy Role
📈US #Bitcoin ETFs surpass $100 billion in assets
⬆️El Salvador’s President Bukele takes to Instagram to show off the country’s 113% gains on its Bitcoin holdings
🗻Central bank liquidity rises in both the US and China
Recommended Articles
Sovreign's Insights from Bitcoin Country: A Trip to El Salvador | Sovreign Bitcoin Consulting
Santiago Varela reflects on his experience at the "Adopting Bitcoin 2024" conference in El Salvador.
Read Santiago Varela’s article about Sovreign reflects on a transformative journey to El Salvador, exploring Bitcoin's real-world applications, economic impact, and revolutionary potential showcased at the Adopting Bitcoin 2024 conference.
Institutional Interest in Bitcoin is flourishing | Sovreign Bitcoin Consulting
Institutional investments and market signals mark Bitcoin's rise as a mainstream financial asset.
This article by Felipe Muñoz highlights Bitcoin's transformation into a mainstream asset, driven by institutional investments, regulatory progress, and market trends signaling growing adoption.
YouTube's Uncensored Rival, Rumble, Announces Strategic Bitcoin Reserve | Sovreign Bitcoin Consulting
Rumble adopts a $20M Bitcoin reserve and explores Lightning Network tipping, championing censorship-resistant, decentralized content creation under CEO Chris Pavlovski.
Felipe examines Rumble’s bitcoin reserve and their overarching bitcoin strategy on their censorship-resistant platform.
Recommended Podcasts
Bitcoin Consensus with Steve Lee and Lyn Alden | SLP616
Stephan Livera Podcast · Steve and Lyn delve into the complexities of Bitcoin consensus, discussing the motivations behind their project analyzing consensus risks in protocol upgrades. They explore the technical and economic aspects of Bitcoin, the evolution of its consensus mechanisms, and the various stakeholder groups involved in decision-making processes.
#1443 BlueCotton | Bitcoin Makes This Small Business Rich!
The Pomp Podcast · Mike Coffey and Julie Denton-Price are the owners of BlueCotton, a small retail-grade screen printing business in Bowling Green, Kentucky. They previously plugged their business into the bitcoin network in a very unique way, and it is changing the lives of 130 employees. In this conversation we discuss, why they did it, how the employees earn bitcoin, and what the impact has been.
The Bitcoin Effect: Why does Bitcoin Radically Change People's Lives? with Robert Breedlove (WiM533)
The "What is Money?" Show · I join Vivian Cheng to discuss why the Bitcoin Community is often mistaken as a cult, what the core values of Bitcoin are, if we can ever have enough bitcoin, balancing stacking Sats vs living in the now, the importance of time preference, and how to find courage and motivation during times of adversity.
Chart of the Week
The Whale Shadows Indicator
Tracks large Bitcoin movements (100+ BTC) from long-dormant wallets, revealing activity by long-term holders or "whales." Filters allow age-range analysis.
“Bitcoin is real 'Absolute Scarcity' = ∞/21M. The rest are just a bunch of copies of that scarcity, fighting over second place. It's ALL assets and copies - divided by 21M BTC!”
– Corey Klipstein
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