Digital Assets - The SiLLC Assembly

MicroStrategy Unveils Ambitious $42 Billion Bitcoin Strategy as Q3 Sees Mixed Financial Performance

[West Drayton, Middx, November 5, 2024 – crocon media – dgoldsmith] MicroStrategy Incorporated (Nasdaq: MSTR), the world’s largest corporate holder of Bitcoin, has unveiled an ambitious three-year capital-raising initiative designed to deepen its Bitcoin holdings. The “21/21 Plan” aims to generate $42 billion, equally split between equity and fixed income securities, to further solidify its position as a Bitcoin Treasury Company. The announcement arrives alongside mixed Q3 2024 financial results, marked by a robust increase in Bitcoin assets but significant operating losses and declining software revenues.President and CEO Phong Le emphasized the company’s commitment to shareholders, stating, “Our focus remains on increasing value for shareholders by leveraging digital capital transformation.” By strategically acquiring more Bitcoin, MicroStrategy intends to bolster its treasury reserves and improve its BTC Yield, a proprietary performance metric that gauges Bitcoin acquisition’s shareholder impact. In Q3, the firm raised $2.1 billion through equity and debt, boosting its Bitcoin holdings by 11% to approximately 252,220 BTC, valued at $16 billion.

Q3 2024 Financial Highlights

Despite MicroStrategy’s success in increasing Bitcoin assets, Q3 saw a 301.6% surge in operating expenses, driven largely by digital asset impairment losses amounting to $412.1 million. Total revenues declined by 10.3% year-over-year to $116.1 million, with gross profit also falling to $81.7 million, down from $102.8 million a year earlier. The software segment showed mixed results, with subscription services revenue rising by 32.5% to $27.8 million but other categories, including product licenses, experiencing declines.

Other financial moves included a 10-for-1 stock split completed in August and a newly announced at-the-market equity offering program. This plan, launched in October, allows MicroStrategy to sell shares worth up to $21 billion as part of the 21/21 initiative.

Strategic BTC Moves and Principles

MicroStrategy’s bold strategy underscores its dedication to Bitcoin, led by co-founder and Bitcoin evangelist Michael Saylor. In a recent tweet, Saylor reiterated that MicroStrategy’s priority remains “in an exclusive relationship with $BTC.” His “Nine Bitcoin Principles” provide a roadmap for the company’s future, focusing on continued Bitcoin acquisition, strategic leverage, and global Bitcoin advocacy.

Among the Q3 highlights:

BTC Yield: MicroStrategy reported a year-to-date BTC Yield of 17.8%, with a revised target of 6-10% annually from 2025 to 2027. This metric reflects the company’s return on its Bitcoin investments relative to shareholder benefits.
Convertible Notes: In September, MicroStrategy issued $1.01 billion in Convertible Senior Notes, with proceeds used to redeem higher-interest debt.
Stock Activity: The recent issuance of 8.05 million Class A shares raised $1.1 billion, with nearly $891 million in equity remaining available for sale.

Analysts’ Reactions to MicroStrategy’s Bold Strategy

Market analysts remain generally bullish on MicroStrategy’s future, with a 30-day average price target of $275 and ratings largely focused on the company’s potential to outpace Bitcoin’s market value through calculated leverage and strategic capital moves. Firms such as BTIG, Barclays, and Maxim Group continue to endorse a Buy rating, reflecting confidence in MicroStrategy’s long-term Bitcoin-centric vision.

While the company’s financial path remains complex, its unwavering dedication to Bitcoin acquisition reflects a pioneering approach in digital asset management. With its 21/21 Plan in motion, MicroStrategy aims to fortify its treasury and redefine its role in the corporate adoption of Bitcoin as a treasury asset.

On May 30, 2023 The SiLLC Assembly has announced a position in MicroStrategy Incorporated ($MSTR), the leading independent analytics and business intelligence company and Bitcoin Treasury Company.

About The SiLLC Assembly (TSA)
SiLLC is in the business of creating and managing a large and diverse network of companies in AR, blockchain, digital assets, eCommerce, internet, metaverse, Retrotech, technology, and VR worldwide. SiLLC continues to capitalize on the numerous opportunities presented by emerging new mediums. SiLLC focuses on constructing a network of companies in advertising/marketing, AR, blockchain, content and community, eCommerce, energy, metaverse, Retrotech, robotics, technology, VR, and enabling technologies. With deep and broad management expertise, a tightly targeted strategic focus, an unparalleled track record, and a unique and successful investment model that demands and drives growth, SiLLC can truly claim to be creating .net value.

For more information, please visit https://www.sillc.net .

About MicroStrategy Incorporated

MicroStrategy Incorporated (Nasdaq: MSTR) holds the distinction of being the world’s first and largest Bitcoin Treasury Company. As a publicly traded entity, MicroStrategy has embraced Bitcoin as its primary treasury reserve asset, strategically accumulating Bitcoin through proceeds from equity and debt financings, along with cash flows from its operations. This approach underscores the company’s commitment to promoting Bitcoin as a form of digital capital. MicroStrategy’s treasury strategy is crafted to give investors diverse economic exposure to Bitcoin by offering a variety of securities, including equity and fixed-income instruments.

Beyond its treasury activities, MicroStrategy also provides top-tier AI-powered enterprise analytics software, in line with its mission of “Intelligence Everywhere.” By blending analytics expertise with innovation in Bitcoin applications, MicroStrategy aims to drive growth in the digital asset sector. The company’s focus on operational excellence, strategic Bitcoin reserve management, and technological advancement positions it as a leader in both digital assets and enterprise analytics, presenting a distinct opportunity for long-term value creation.

MicroStrategy, MicroStrategy AI, Intelligence Everywhere, Intelligent Enterprise, and MicroStrategy Library are trademarks or registered trademarks of MicroStrategy Incorporated in the United States and certain other countries. Other product and company names mentioned may be trademarks of their respective owners.

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Disclaimer
All transactions are carried out by SiLLC, a private portfolio management assembly. This document is not an offer of securities for sale or investment advisory services. This document contains general information only and is not intended to provide general or specific investment advice. Past performance is not a reliable indicator of future results and targets are not guaranteed. Certain statements and forecasted data are based on current expectations, current market and economic conditions, estimates, projections, opinions, and beliefs of SiLLC and/or its members. Due to various risks and uncertainties, actual results may differ materially from those reflected or contemplated in such forward-looking statements or in any of the case studies or forecasts. All references to SiLLC’s advisory activities relate to The SiLLC Assembly International.

Arcario’s Strategic Acquisition of Vanir Finance: A New Chapter in Digital Asset Lending and Blockchain Innovation

December 6, 2023 — [crocon media – msch] In a significant move within the digital asset and blockchain industry, Arcario AB has announced its agreement to acquire all shares in Vanir Finance AS from Klein Invest AS, Kabaal Crypto AS, and Haig Hodling AS. This acquisition, valued at SEK 25,200,000, will be paid through 2,100,000,000 newly issued shares in Arcario, marking a substantial shift in the company’s strategic direction.

A Strategic Expansion in Digital Asset Lending

The acquisition of Vanir, a company specializing in lending against digital assets, represents a pivotal step for Arcario in expanding its footprint in the burgeoning field of crypto collateralized lending. This move is not just a financial transaction but a strategic alignment of complementary technologies and services. Vanir’s platform, which integrates both traditional and decentralized finance, will significantly enhance Arcario’s existing K33 platform, offering a more robust and comprehensive suite of services in the digital asset space.

Financial and Operational Synergies

The deal is expected to bring immediate operational benefits to Arcario. Vanir’s consultancy agreement ensures a positive cash flow, meeting Arcario’s operational funding requirements for the next 24 months. This aspect of the transaction is particularly noteworthy as it positions Arcario to achieve a positive operational cash flow immediately following the acquisition’s closure.

Market Implications and Future Prospects

From a market perspective, this acquisition is a clear indicator of the growing importance of blockchain technology and digital asset lending in the financial sector. Arcario’s move to acquire Vanir signals a growing trend among investment companies to diversify into digital assets and blockchain technology, recognizing the potential for high returns and the transformative impact these technologies can have on traditional financial services.

The Road Ahead for Arcario and Vanir

Looking forward, the integration of Vanir’s platform with Arcario’s K33 will likely accelerate the development and expansion of innovative digital asset services. This acquisition is set to create a synergy that could redefine the landscape of digital asset lending and blockchain-based financial solutions.

In conclusion, Arcario’s acquisition of Vanir Finance is a strategic move that not only expands its capabilities in the digital asset space but also positions the company at the forefront of blockchain innovation and fintech evolution. The transaction is a testament to the growing integration of traditional finance with the dynamic world of digital assets and blockchain technology.

Check out the news release here: https://www.arcario.com/ir/article?slug=arcario-secures-positive-operating-cash-flow-by-acquiring-vanir-finance-as-and-raises-approximately-sek-7-5-million-through-a-directed-share-issue

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Disclaimer
All transaction are carrying out by SiLLC, a private portfolio management assembly. This document is not an offer of securities for sale or investment advisory services. This document contains general information only and is not intended to represent general or specific investment advice. Past performance is not a reliable indicator of future results and targets are not guaranteed. Certain statements and forecasted data are based on current expectations, current market and economic conditions, estimates, projections, opinions and beliefs of SiLLC and/or its members. Due to various risks and uncertainties, actual results may differ materially from those reflected or contemplated in such forward-looking statements or in any of the case studies or forecasts. All references to SiLLC’s advisory activities relates to SiLLC Assembly International.

LN Markets, Arcario’s Portfolio Company, Shows Resilience and Growth in Q2 Amidst Volatile Bitcoin Market

July 5, 2023 — [crocon media – msch] Arcario’s portfolio company, LN Markets, has showcased impressive resilience and growth in the second quarter of 2023. Despite the volatile nature of Bitcoin prices, LN Markets has demonstrated adaptability and achieved remarkable results across various metrics.

The increase in trading volumes, especially during June, when Bitcoin surpassed $30k, is a testament to LN Markets’ ability to capitalize on market opportunities. The record-breaking $50 million monthly trading volume highlights the platform’s popularity and its ability to attract users in a competitive market.

Furthermore, LN Markets’ focus on user experience is evident in the introduction of a transparent fee model and a tiered fee system. This approach caters to high-volume traders and enhances the platform’s competitiveness. Additionally, the development of a Trustless Over The Counter (OTC) trading prototype reflects LN Markets’ commitment to security and efficiency.

The impressive growth of the Lightning Network, with all-time highs in both US dollar and Bitcoin capacity, positions LN Markets at the forefront of this technological revolution. The Lightning Network’s increasing adoption by industry giants like Binance further solidifies its importance in enhancing transaction speed and efficiency.

Looking ahead to the third quarter, LN Markets aims to expand its reach through integrations with popular trading libraries. This focus on continuous growth and sustained profitability, even during the traditionally quieter summer period, showcases LN Markets’ determination and resilience.

As a significant shareholder in LN Markets’ parent company, ITOAM SAS, Arcario is well-positioned to benefit from the success of LN Markets. The company’s innovative capabilities and user-centric approach make it a valuable asset within the Bitcoin ecosystem.

Arcario’s commitment to investing in companies like LN Markets, which demonstrate consistent growth and a strong vision for the future, reaffirms its position as a strategic player in the digital asset space. LN Markets’ performance in Q2 and its outlook for Q3 are promising indicators of its continued success and contribution to the broader Bitcoin ecosystem.

In conclusion, LN Markets’ robust performance in Q2 and its strategic position within the Bitcoin Lightning Network solidify its status as a valuable asset in Arcario’s portfolio. With a commitment to innovation and user-centric solutions, LN Markets is well-positioned for sustained growth and continued success in the digital asset trading landscape.

Please note that while the future looks promising, Arcario operates in the cryptocurrency industry, which is still largely unregulated and subject to continual and rapid technological and regulatory changes. There are uncertainties related to the development of the cryptocurrency market, including its future size, and the future success of Arcario’s business is, therefore, difficult to predict.

Check out the full details here: https://www.arcario.com/ir/article?slug=arcarios-ln-markets-sustains-strong-performance-in-q2-2023

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