MicroStrategy is one of the loudest crypto advocates listed on Wall Street. Now, the company led by Michael Saylor is conducting its first ever corporate bond sale, using the proceeds exclusively for the purchase of Bitcoin.
MicroStrategy’s strategy?Buy dipping sauce
After initially planning to issue $400 million in debt, the company saw huge demand by the time the transaction kicked off on Monday. Saylor and the team chose to increase this amount to $500 million through the junk bond sale on Tuesday. These types of bonds generally provide more aggressive yields and at the same time have a higher risk of default. According to reports, after earlier pricing discussions were about 6.25% and 6.5%, the yield of these secured notes was reported to be 6.125%. Investment bank Jeffries led the offering.
After the news comes A bunch of bitcoin purchases Throughout the first half of the year. At the beginning of this year, MicroStrategy locked 20,000 BTC at a price of more than $1B.In recent weeks, the company has acquired hundreds more for approximately US$55,000 per person coinAfter spending a weekend at the 2021 Bitcoin Conference in Miami, Celer is ready to welcome more.
To date, the company has more than 90,000 BTC, an average of coin The price is slightly less than US$25,000. Nevertheless, Bitcoin’s fall in the second quarter is obvious. MicroStrategy reported in a document this week that it lost approximately $2.5 billion in its next earnings report due to price fluctuations in cryptocurrencies. After issuing convertible bonds in the past to purchase cryptocurrencies, Sailer seems ready to buy on dips through the first corporate bond sale.
Related Reading | Saylor says the probability of Bitcoin being replaced is zero
Corporate bonds attract attention
This is not the first “first” of MicroStrategy. The company was also one of the first companies to pay board salaries in Bitcoin, and Saylor led the company to become the first company to incorporate Bitcoin into its corporate strategy. Saylor’s high attention to Bitcoin in particular has caused considerable criticism, but in addition to that, MicroStrategy’s business intelligence products still have a large number of Fortune 500 customers’ success in its cab.
This week’s bond issuance is also worth noting, not only because it is the first of its kind, but also because it caused repercussions. According to reports, the company increased its bill issuance to US$500 million, but received more than US$1.5B of issuance orders-including a large number of hedge funds. Despite the recent drop in Bitcoin, many major investors still seem to be gritted their teeth.Coming weeks May be particularly convincing Surround them with radical views.
MicroStrategy has come back to earth after yielding substantial attention earlier this year with Bitcoin purchases. | Source: $MSTR-NASDAQ on TradingView.com
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