Latest news with #JeffWalton
Yahoo
04-07-2025
- Business
- Yahoo
Is Bitcoin About to Enter the S&P 500? MicroStrategy Now Qualifies For Inclusion, Analyst Says
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Anyone invested in the S&P 500 may soon own Bitcoin indirectly. MicroStrategy (NASDAQ:MSTR) maxi Jeff Walton said Tuesday on X that the company had cleared the final hurdle to qualify for the highly coveted index, which could make Bitcoin an index asset by proxy. Since MicroStrategy's inclusion in the Nasdaq 100, the big question has been whether the company with the most significant Bitcoin holdings of any public firm can get included in the S&P 500 next. But one hurdle stood in its way for months: net profitability over 12 months. Don't Miss: — no wallets, just price speculation and free paper trading to practice different strategies. Grow your IRA or 401(k) with Crypto – . Under previous accounting rules, MicroStrategy was forced to report its Bitcoin holdings at an impaired price, leading to negative earnings on unrealized losses. However, following a Financial Accounting Standards Board rule change allowing firms to record their digital assets at fair value, MicroStrategy has finally been able to clear the profitability criteria. With Bitcoin closing at around $107,000 on Monday, Walton said MicroStrategy will report an estimated $14 billion profit in Q2, translating to an estimated $11 billion net profit over the past 12 months. "This clears the FINAL criteria Strategy needed to be considered for the S&P 500," he said. But qualifying may not be enough for inclusion. After qualifying, the S&P 500 committee still has complete discretion over which companies get included. This process is likely to be "controversial and heavily debated," according to Walton. Trending: New to crypto? on Coinbase. The committee typically considers index balance, economic representation and stability before making its decision. Analysts are divided on whether MicroStrategy's Bitcoin accumulation model will be an issue for the committee, as some argue that the firm now largely operates like a closed-ended fund. "S&P excludes ETFs and closed-end funds from its index because they want the index to contain operating businesses, not investment funds," Brooklyn Investment Group equities chief Antii Petajisto told Bloomberg last year, discussing MicroStrategy's odds of being included in the index. Whatever the case, market watchers will have to wait until the third week of September to know if the firm will be included, as the second quarter inclusion window has the firm makes the cut, it would become the second cryptocurrency-related company to do so this year after Coinbase (NASDAQ:COIN) in May. 'Inclusion in the S&P 500 means every major index fund holds Strategy shares—further cementing Bitcoin's mainstream legitimacy,' Bitcoin content creator 'Alexes Nakamoto' said. MicroStrategy stock is trading at $396 pre-market with a market capitalization of $113 billion. At last look, it also holds 597,325 BTC worth nearly $64 billion, representing nearly 3% of the entire asset supply. Read Next: Named a TIME Best Invention and Backed by 5,000+ Users, Kara's Air-to-Water Pod Cuts Plastic and Costs — Image: Shutterstock This article Is Bitcoin About to Enter the S&P 500? MicroStrategy Now Qualifies For Inclusion, Analyst Says originally appeared on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-06-2025
- Business
- Yahoo
Strategy Shifts Capital Raise to Preferred Stocks as Common Share Issuance Loses Allure
Over the past two weeks, Strategy (MSTR) has refrained from utilizing the at-the-market (ATM) equity program on its common shares to fund bitcoin BTC purchases, choosing instead to use the programs on its two perpetual preferred stocks. The choice most likely reflects the narrowing premium between the company's share price and its multiple net asset value (mNAV) or, more colloquially, the difference between its market cap and the value of its bitcoin holdings, and allows Strategy to raise funds to buy more BTC without diluting shareholders' stakes in the company. When the share price trades close to the underlying bitcoin asset value, issuing common shares via ATM becomes less attractive. Such offerings are typically only advantageous when executed at a meaningful premium. Strategy funded its most recent 1,045 BTC purchase using proceeds from its two perpetual preferred stock ATMs: 59.18% from the STRK offering and 40.82% from the STRF one. These preferred stocks have demonstrated strong lifetime returns of 35% for STRK and 24% for STRF. This gives the company greater flexibility to continue accumulating bitcoin while preserving upside for common stock investors. There's also an additional dynamic at play, according to analyst Jeff Walton. The effective dividend yields of STRK and STRF have steadily declined from about 10% even though the yield on the benchmark U.S. 10-year Treasury has remained relatively constant at 4.5%. That's because the dividend yield falls as the price of the stock increases, a bond-like behavior that makes the preferred shares more attractive in a stable rate environment. Strategy is likely to reengage the ATM on its common stock if the share price rises significantly, particularly if it exceeds twice the mNAV, which would allow room for dilutive issuance at a premium. While the common stock ATM remains the primary mechanism to fund dividend obligations on the preferred shares, Strategy retains the option to use the preferred stock ATMs for this purpose as well, depending on market conditions.
Crypto Insight
26-05-2025
- Business
- Crypto Insight
Strategy's Michael Saylor hints at buying the Bitcoin dip
Strategy co-founder Michael Saylor signaled an impending Bitcoin purchase by the company amid the recent dip from the all-time high of $112,000 reached on May 22. 'I only buy Bitcoin with money I can't afford to lose,' Saylor wrote to his 4.3 million followers in an X post. The company's most recent purchase of 7,390 BTC on May 19, valued at nearly $765 million, brought Strategy's total holdings to 576,230 BTC. If Strategy completes the acquisition on May 26, it will mark the company's seventh consecutive week of Bitcoin purchases. Strategy has become synonymous with Bitcoin, as the company continues stacking large amounts of BTC for its corporate treasury and inspiring other companies to pivot to a Bitcoin treasury plan, creating a sustained demand for the digital asset from institutional players and helping bolster the price of BTC. BTC to propel Strategy into a $10 trillion enterprise, leaving other companies in the dust? Market analyst Jeff Walton recently said that Strategy may become a $10 trillion company and potentially command the title of the most valuable publicly traded corporation in the world due to its growing Bitcoin stockpile. 'Strategy holds more of the best assets, and the most pristine collateral, on the entire planet than any other company, by multiples,' Walton told the Financial Times in a documentary about the company. The analyst added that most companies typically face challenges raising hundreds of millions of dollars in capital, but Strategy has been able to raise billions of dollars in under two months. Whereas most companies would spend this capital to overhaul the production process or on operational costs, Strategy uses the depreciating fiat money raised from creditors and equity holders to purchase a rapidly appreciating asset for its balance sheet. Michael Saylor previously forecasted that the price of Bitcoin would reach millions of dollars per coin in the coming decades, arguing that the supply-capped asset features an asymmetric upside against all fiat currencies that have no supply cap. However, Bitcoin has struggled to reach the $150,000 level in the short term. Saylor blamed the sluggish price action on investors taking profits prematurely and rotating out of BTC due to a lack of long-term conviction. Source:
Yahoo
23-05-2025
- Politics
- Yahoo
Interfaith solidarity in DC as mourners honor victims of antisemitic attack
WASHINGTON (DC News Now) — People of all backgrounds showed their support Thursday outside the Capital Jewish Museum, where a Jewish couple was killed Wednesday night in an antisemitic attack. Throughout the day, a memorial of flowers and messages grew. There were handwritten notes in Hebrew and English. One said, 'May we plant and tend to seeds of peace, not hate.' PREVIOUS COVERAGE 'It is really, really upsetting when people are gunned down, simply for being Jewish,' said Jeff Walton. 'This is not an issue of political disagreement. This is an issue of racial and ethnic hatred. And that is something that as Christians we're called to stand against. And that's why I'm here today.' In the shadow of the church across the street from the museum, a group of Christians and Jews stood united against hate, remembering Sarah Milgrim and Yaron Lischinsky. 'I think all kinds of antisemitic rhetoric has proliferated, especially since October 7th. Clearly, ideas have consequences. Words matter,' said James Diddams. Diddams met Lishinsky a few weeks ago while taking a class for a professional certificate. 'He was so curious, intellectually curious about who the things we were talking about, the things we were learning. He was so engaging,' Diddams said. Many Jews are praying for their safety as the interfaith community condemns what happened. 'I really hope this is not a pattern that's going to continue but I'm afraid it might be. And that's very scary. And it's important for people in D.C., people everywhere, to make it clear how unacceptable this is,' Diddams said. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
14-05-2025
- Business
- Yahoo
MicroStrategy's game plan sparks ‘insane' reaction from insiders
A recent documentary by Financial Times has brought renewed attention to MicroStrategy's Bitcoin-accumulation strategy to the masses, drawing the line between market speculators and those companies seeking to swap cash reserves for the digital assets. Since 2020, MicroStrategy, which remade itself into Strategy, has been buying Bitcoins with the proceeds from stock sales and the issuance of convertible bonds, spending billions to buy up more than 568,000 Bitcoins, as of May 14. Some market analysts view it as a smart capital deployment, using market premiums to ramp up Bitcoin holdings. Jeff Walton, who was a reinsurance broker and now a Digital Capitalist at Strategy, said, "Strategy raised $12 billion of capital in 50 days. It's incredibly hard to raise $100 million of capital, and they just raised $100 million of capital 120 times in 50 days, and they could buy Bitcoin with that capital. That's insane.' According to Walton, there is no downside risk. He added, 'I'm happy to take the downside risk, because I think the downside risk is zero.' However, MicroStrategy's Bitcoin-buying strategy does not bode well with all analysts, as per the film. If the price of Bitcoin drops significantly or stays low and doesn't recover for some time, MicroStrategy could face major problems. 'The virtuous circle can turn into a vicious cycle if the Bitcoin price falls,' Craig Coben, analyst at Bank of America, warned, noting the risk of eroding investor confidence and valuation premiums. However, he also adds, '[...] but so far, it is working, and as long as Strategy can continue to command a premium to its net asset value, then it will continue to reap benefits for shareholders'. However, doubts were cleared by MicroStrategy's Chairman Michael Saylor. Saylor said, 'Our capital structure is constructed so that [if] Bitcoin falls 90% and stays there for four or five years and we would still be stable.' Notably, at press time, MicroStrategy's stock MSTR has been down by 0.81% in pre-market. TheStreet Roundtable reached out to MicroStrategy for comment on its Bitcoin strategy. The company did not respond by press time. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
