MicroStrategy is selling corporate bonds to buy Bitcoin, the Nasdaq-listed business intelligence company, intends to increase its stock at 92,079 btc to date, worth $3.29 billion to date.
According to a company document, the senior guaranteed notes will be available to qualified institutional buyers. The company has raised $550 million in a private placement for qualified investors in the past and used the proceeds to buy bitcoin.
MicroStrategy began investing in bitcoin in August of last year, when it made a massive $250 million bet on the flagship cryptocurrency as part of its capital allocation strategy. At the time, the company bought 21,454 BTC and detailed its decision to invest was influenced by “factors that affect the economic and business scenario”, which the company believes is creating “long term risks” for its corporate treasury program.
These factors include the economic and public health crisis created by the COVID-19 pandemic, the “unprecedented government financial stimulus measures, including quantitative easing adopted around the world”, and global political and economic uncertainty.
Since then, the company has continued to add BTC to its treasury and has now invested $2,251 billion to buy well over 92,000 BTC. The senior guaranteed notes it will offer now mature in 2028 and the funds raised will be used to buy more BTC.
— Michael Saylor (@michael_saylor) June 7, 2021
According to Bloomberg, the private placement is $23 million greater than the company’s entire operating cash flow since 2016. While it was one of the first companies to invest in BTC, several others have added the cryptocurrency to their balance sheets in recent years. months, including Tesla, Square, Maitu and others.
While dozens of companies have BTC on their balance sheets, MicroStrategy and Tesla are the only ones that have bought more than $1 billion of the major cryptocurrency.