MicroStrategy Concludes $500 Million Offering to Purchase More Bitcoin (BTC)
Bitcoin bull MicroStrategy today announced it had completed its $500 million offering of secured notes.
MicroStrategy Announces Completion of $500 Million Offering
In a statement made today, software firm MicroStrategy said it had closed its previously announced offering of senior secured notes due 2028. Per sources close to the matter, MicroStrategy will use the funds – after accounting for discounts, commissions, and expenses, to purchase more bitcoin (BTC).
As mentioned earlier, the secured notes are due 2028 that bear interest at an annual rate of 6.125%.
For the uninitiated, MicroStrategy already holds a whopping 92,079 bitcoin (BTC) under the oversight of its newly established corporate offshoot called MacroStrategy. At press time, bitcoin is trading at $40,758 which means that if MicroStrategy were to market buy bitcoin, it would be able to add close to 11,980 BTC to its balance sheet.
Institutions are All Aboard the Bitcoin Train
MicroStrategy is inarguably the most vocal firm in the world when it comes to its unyielding affinity toward the premier cryptocurrency. To date, MicroStrategy has made multiple BTC purchases and has continued to grow its stack of bitcoin at an exponential rate.
As recently reported, MicroStrategy had announced it would raise a significant sum by selling senior secured notes. In the same vein, BTCManager reported earlier this year MicroStrategy’s decision to pay its non-employee board members their fees in BTC instead of cash.
Before that, in April, MicroStrategy announced it had purchased 253 more BTC at an average price of $59,339, including fees and expenses.
While extraordinary in nature, MicroStrategy’s love for bitcoin does not come off as surprising. This is because an increasing number of institutions are considering buying instead of gold to hedge against the U.S. dollar and all other fiat currencies at large.
In similar news, BTCManager reported in April that BNY Mellon has attributed the underperformance of its small-cap exchange-traded fund (ETF) to its failure to add the stocks of bitcoin-linked firms such as MicroStrategy, choosing to invest in gold instead.