MicroStrategy CEO Michael Saylor speaks at the Bitcoin 2021 Convention, a crypto-currency conference held at the Mana Convention Center in Wynwood on June 04, 2021 in Miami, Florida.
Joe Raedle | Getty Images
MicroStrategy‘s HODL strategy is continuing to reward investors.
The company said on Monday that it acquired an additional 3,000 bitcoins for a total of $155 million between Feb. 15 and Feb. 25. MicroStrategy, along with its subsidiaries, now owns about 193,000 bitcoins worth $11 billion.
Michael Saylor, the company’s chairman and ex-CEO and one of the cryptocurrency’s principal evangelists, touted the latest purchase in a post on X, noting that MicroStrategy’s average purchase price over time is $31,544. As of Tuesday, bitcoin is trading at just under $57,000.
MicroStrategy shares surged 16% on Monday and another 10% on Tuesday to close at $871.80.
Founded in 1989, MicroStategy has a business in enterprise software and cloud-based services, but its shareholder value is almost entirely tied to its bitcoin ownership, effectively making the company a proxy for the world’s biggest cryptocurrency.
During MicroStrategy’s latest earnings call on Feb. 7, CFO Andrew King said the company is “the largest corporate holder of bitcoin in the world, and we have remained committed to our bitcoin acquisition strategy with the highest conviction.”
Bitcoin has jumped about 35% this year to its highest since December 2021. Ether, the next-biggest cryptocurrency, is up 42% in 2024, climbing to around $3,250 on Tuesday.
Investors have been increasingly bullish on the bitcoin trade following the SEC’s approval of multiple spot bitcoin exchange-traded funds last month. Bitcoin is up 24% since new ETFs began to trade on Jan. 11, and the funds have brought in billions of dollars in flows.
“The demand that ETFs are bringing to the spot bitcoin market is significantly more than the new supply being produced each day,” said Ryan Rasmussen, an analyst at Bitwise Asset Management. “Institutional capital is still getting up to speed with bitcoin ETFs. I expect a lot more demand is still under the surface and yet to be seen.”
Also buoying trader sentiment is the “halving” event, which occurs every four years and is next set for April. At that point, the production of bitcoin gets cut in half, a process meant to reduce the rate at which new coins can enter the network.
Halvings precede bull runs
The first three halvings — in 2012, 2016, and 2020 — were all tied to bull runs in the price of bitcoin. Research firm Benchmark said in a note on Tuesday that the most recent halving in May 2020 “preceded bitcoin’s dramatic rise from $8,572 to an all-time high of $67,566 in 2021.”
MicroStrategy announced its plan to invest in bitcoin in mid-2020, disclosing in an earnings call that it would commit $250 million over the next 12 months to “one or more alternative assets,” which could include digital currencies like bitcoin. At the time, the company’s market cap was about $1.1 billion.
The company is up 33% so far this year, lifting its market cap to almost $15 billion.
Benchmark wrote in its report that even with ETFs providing more ways for investors to access bitcoin, MicroStrategy’s “stock continues to offer investors a unique value proposition.” For example, MicroStrategy has the ability to acquire bitcoin using proceeds from debt and equity issuances, the firm said.
Analysts at TD Cowen wrote in a note on Tuesday that they expect the bitcoin transactions to “prove over time to be accretive to shareholders.”
“MicroStrategy represents a new kind of firm that generates dollar-based cash flow from enterprise software and cloud services but then converts its excess cash flow – on an effectively leveraged basis – into Bitcoin,” the TD Cowen analysts wrote. “What started as a defensive strategy to protect the value of its reserve assets has become an opportunistic strategy intended to accelerate the creation of shareholder value.”
— CNBC’s Dylan Butts and Ari Levy contributed to this report.
Tesla has released a new navigation feature to make it easier for people towing trailers to find charging stations that can accommodate them.
Towing trailers with electric vehicles is not yet super popular, but it is rapidly gaining in popularity, with more electric SUVs and pickup trucks having increasingly impressive towing capacity.
Tesla has had the Model Y and Model X with a limited but still useful towing capacity for a few years, but with now the Cybertruck and the opening of its Supercharger network to other EVs, including many pickup trucks, the automaker is starting to see more people arriving at its popular charging stations with trailers.
This can be problematic as if you don’t want to block several chargers, you are going to have to unhook your trailer to go charge your vehicle. That’s less than ideal and something gas-powered vehicles rarely have to do at gas stations.
Tesla’s solution has been to build a few “pull in” charging spots at some Supercharger stations that enable you to park with your trailer while charging (via Tesla Motors club):
Tesla is currently building more of these stations, but they are still far and few in between and hard to find.
The automaker is now making it easier to find with a new software update. Now, you can click on a Supercharger station, and it will tell you if it has trailer stalls.
Furthermore, if you are driving on “trailer mode” and searching for charging stations, those with “trailer friendly” stalls will appear at the top:
However, as usual, when traveling long distances in an electric vehicle, you are better off just doing a bit of planning about where to charge ahead of time, especially if you are going to be towing over long distances.
Now that Tesla can distinguish between trailer-friendly and non-trailer-friendly stations, the automaker can hopefully include it in its API for other automakers to integrate into their own navigation systems as many of them can start using the Supercharger network.
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Corporate America is investing in clean energy at record levels, with tech giants taking the top spots for users of solar.
Meta, Google, and Amazon are leading the charge in solar and battery storage adoption, according to the Solar Energy Industries Association’s (SEIA’s) latest “Solar Means Business” report.
Meta continues to hold the title of the top solar user in corporate America, with nearly 5.2 gigawatts (GW) of solar capacity installed. Meanwhile, Google leads the way in energy storage, boasting 936 megawatt-hours (MWh) of installed battery capacity. Through the first quarter of 2024, these companies have added the most solar capacity to their electricity portfolios, with major players like General Motors, Toyota, and US Steel also climbing the ranks.
The report reveals that US businesses have installed nearly 40 GW of solar capacity both onsite and offsite through Q1 2024, and corporate storage use now exceeds 1.8 gigawatt-hours (GWh). Even more growth is coming: Companies have over 3 GWh of battery storage under contract that will come online in the next five years.
“Some of the largest industrial and data operations in the world continue turning to solar and storage as a reliable, low-cost way to power their operations,” said SEIA president and CEO Abigail Ross Hopper.
Technology companies are at the forefront of this shift as data center growth drives skyrocketing electricity demand. Amazon, for example, leads the US with 13.6 GW of solar procurements under contract, while Meta and Google each have nearly 6 GW under contract – pipelines over 10 times larger than the next company in the rankings.
Target remains the US’s leading onsite corporate solar user for the ninth year in a row, with Prologis, Walmart, Amazon, and Blackstone also making the top five. For the first time, the “Solar Means Business” report is also tracking corporate battery energy storage, with Google, Apple, Meta, Target, Walmart, Home Depot, and Kohl’s among the top 10 companies using storage to meet more of their energy needs in real-time.
Looking ahead, both offsite and onsite energy storage are expected to play a bigger role in corporate renewable energy strategies. Medical companies like Kaiser Permanente are already using batteries to power microgrids, making their facilities more resilient to outages.
Carolyn Campbell, Meta’s head of clean and renewable energy, East, highlighted the importance of expanding solar capacity to match the company’s global operations with 100% clean energy: “We’re thrilled to rank number one for corporate solar procurement in SEIA’s report this year, and we continue to find ways to grow the grid to benefit everyone.”
Target’s vice president of property management, Erin Tyler, said of Target’s 20-year-old solar program, “Through our commitment to solar, we’re well on our way to achieving our corporate goal of sourcing 100% of electricity from renewable sources by 2030.”
The “Solar Means Business” report also looks at the policies driving corporate America’s adoption of solar. Many companies are taking advantage of the Inflation Reduction Act’s long-term clean energy incentives. To further accelerate their renewable energy investments, businesses are calling for improvements in interconnection processes, new community solar legislation, and simpler tax credit monetization.
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Volkswagen Group Africa has officially begun production of a modern electric farm tractor at its multifunctional facility in Gashora, Rwanda in a bid to advance modern, low-emission agricultural initiatives in Africa.
Part of a larger Rwandan initiative called the GenFarm Project, the new VW tractor is part of a “holistic ecosystem” of electrified farming machinery set to be used throughout rural Africa – where liquid fossil fuels are often just as difficult to come by as electricity. The goal is to provide machinery that’s both sustainable and reliable.
“We are growing our footprint in Africa and regard Rwanda as a key growth market. This project demonstrates our commitment to sustainable practices and highlights our ability to provide mobility solutions to the rural community in addition to the urban community currently serviced by our Volkswagen Mobility Solutions Rwanda business,” explains Martina Biene, Volkswagen Group Africa Chairperson and Managing Director. “The GenFarm Project fosters technological innovation and aligns with Volkswagen Group’s strategy to generate meaningful value for both society and the environment through sustainable mobility.”
The GenFarm project will eventually provide mobility services for transportation of goods and people. In June 2023, Volkswagen Group Africa signed a Memorandum of Understanding (MoU) with the Government of Rwanda to provide land for the establishment of the GenFarm Project.
The Volkswagen tractors’ electric motor produces 20 kW (about 27 hp), making it about the same size as the Solectrac product (which hasn’t worked out well in the US, it must be said). That motor gets its electrons from a 32 kWh swappable battery. Batteries are swapped/charged at the Empowerment Hub to minimize downtime. DC fast charging isn’t available, but the relatively small, swappable batteries (hopefully) mean that’s not much of a problem.
The GenFarm project hopes the new VW electric tractor will help clean up Rwanda’s agricultural sector, which currently accounts for some 25% of the national Gross Domestic Product.
Electrek’s Take
We’ve talked a lot about the lack of new farmers in America, but the problem is global – especially as western companies, and western ideas about consumerism, continue to spread. Products like this electric tractor from VW will make farming cleaner, quieter, and (hopefully) more attractive to young workers.