Jun 14, 2021 (OTC PR WIRE via COMTEX) -- The biggest story in the cryptocurrency space has to do with Elon Musk. He started the decline last month by stating that Tesla Inc /zigman2/quotes/203558040/composite TSLA +0.34% would no longer accept Bitcoin as payment for its cars. And now, he may have ended its bear market by reversing that conclusion.
According to CNBC, the Tesla CEO said on Sunday that the firm will return to accepting bitcoin transactions once it confirms there is reasonable clean energy usage by miners. This opens the door to salvation for the climate change enthusiasts that make up such an important contingency in the Millennial and Zoomer-driven crypto marketplace.
It's an on-again-off-again love affair. And, right now, it appears to be "on again", so traders should adjust accordingly.
The key level to appreciate is a confirmation of clean energy usage by miners, which Musk appears to define as about 50% clean, accompanied by a positive future trend, whatever that means.
And what it means may not be as important as the notion that a door has been reopened. Clearly, this is important to the world's #1 missionary for the crypto space. Musk appears to be generally well-disposed to the space. And this move confirms - as we see it - that he is going to keep a constructive approach alive. He wants crypto to be a sustainable practice. But he's not going to slam the door shut on a whim.
That basic idea is helping the space as we enter the new week, including stocks like Coinbase Global Inc /zigman2/quotes/225893452/composite COIN +2.84% , Riot Blockchain Inc /zigman2/quotes/209538617/composite RIOT +4.17% , ISW Holdings /zigman2/quotes/201289845/delayed ISWH +7.41% , Marathon Patent Group Inc /zigman2/quotes/205886758/composite MARA +4.22% , HIVE Blockchain Technologies Ltd , MicroStrategy Incorporated /zigman2/quotes/202561856/composite MSTR +2.54% , Canaan Inc - ADR /zigman2/quotes/215105791/composite CAN +18.43% , and Paypal Holdings Inc /zigman2/quotes/208054269/composite PYPL +0.50% .
We take a closer look at a few of the more interesting names on this list below.
MicroStrategy Incorporated /zigman2/quotes/202561856/composite MSTR +2.54% provides modern analytics on an open, comprehensive enterprise platform used by many of the world's most admired brands in the Fortune Global 500.
Optimized for cloud and on-premises deployments, the platform features HyperIntelligence, a breakthrough technology that overlays actionable enterprise data on popular business applications to help users make smarter, faster decisions.
MicroStrategy Incorporated /zigman2/quotes/202561856/composite MSTR +2.54% recently announced the pricing of its offering of $500 million aggregate principal amount of senior secured notes due 2028, which will bear interest at an annual rate of 6.125%. The notes will be sold in a private offering to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended and to persons outside of the United States in compliance with Regulation S under the Securities Act. The offering is expected to close on June 14, 2021, subject to satisfaction of customary closing conditions.
According to the release, the notes will be fully and unconditionally guaranteed on a senior secured basis, jointly and severally, by MicroStrategy Services Corporation, a wholly-owned subsidiary of MicroStrategy, and certain subsidiaries of MicroStrategy that may be formed or acquired after the closing of the offering. The notes and the related guarantees will be secured, on a senior secured basis with MicroStrategy's existing and future senior indebtedness, by security interests on substantially all of MicroStrategy's and the guarantors' assets, including any bitcoins or other digital assets acquired on or after the closing of the offering, but excluding MicroStrategy's existing bitcoins as well as bitcoins and digital assets acquired with the proceeds from existing bitcoins. MicroStrategy's existing approximately 92,079 bitcoins will be held by a newly formed subsidiary, MacroStrategy LLC.
And the stock has been acting well over recent days, up to something like 7% in that time.
MicroStrategy Incorporated /zigman2/quotes/202561856/composite MSTR +2.54% generated sales of $122.9M, according to information released in the company's most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -6.4% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($83.7M against $283.6M, respectively).
HIVE Blockchain Technologies Ltd (otcmkts:HVBTF) owns state-of-the-art green energy-powered data center facilities in Canada, Sweden, and Iceland which produce newly minted digital currencies like Bitcoin and Ethereum continuously on the cloud.
Its deployments provide shareholders with exposure to the operating margins of digital currency mining as well as a portfolio of crypto coins.
HIVE Blockchain Technologies Ltd (otcmkts:HVBTF) recently announced that it has received confirmation from Bodens Energi Nat AB for an additional guaranteed 10 MW of green energy electricity for its GPU data centre in Sweden.