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MicroStrategy receives $1.6 billion for its Bitcoin bonds

MicroStrategy receives $1.6 billion for its Bitcoin bonds


MicroStrategy, Michael J. Saylor’s firm, saw $1.6 billion in less than 24 hours for its Bitcoin-linked Junk bond offering

The company, which is famous for having bitcoin on its balance sheet, has reportedly been inundated with orders, including interest from a large number of hedge funds.

Not only that, but MicroStrategy Inc. has also reportedly increased the size of its Junk bond offering to finance the purchase of more bitcoin. Basically, from the initial $400 million, only yesterday the company confirmed that it had sold $500 million worth of notes and that they were the first of their kind in the high-yield market. 

Essentially, the first corporate bonds with proceeds earmarked for the purchase of BTC issued by MicroStrategy are expected to yield slightly more than 6%. Specifically, the report comments as follows:

“It sold the secured notes at a yield of 6.125%, according to a person with knowledge of the matter, lower than early pricing discussions of 6.25% to 6.5%”.

Saylor’s focus on Bitcoin, including making it an official business strategy, has drawn the ire of critics. Certainly, the strategy of promoting this kind of high-risk but also higher-return assets came in a week when the trading range for BTC is $31,188 to $39,151

MicroStrategy and Bitcoin: strategies to accumulate BTC

The new $1.6 billion in orders just “cashed in” by MicroStrategy, has been publicly stated as that amount to be used to buy Bitcoin. 

Back at the end of April 2021, MicroStrategy had released its first-quarter 2021 results, pointing out that its strategy to accumulate bitcoin was proving successful

And indeed, the company published that it held as many as 20,857 bitcoin, which at the price at that time was equivalent to over $1 billion

Not only that, but by mid-May, MicroStrategy had accumulated 91,850 bitcoin, which it says were purchased for about $2.25 billion at an average of about $24,450 per BTC.

 






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