MicroStrategy Finances Next Bitcoin Investment Through Massive Bond Sales
With bond sales amounting to 650 million US dollars, the software manufacturer underlines its belief in Bitcoin.
Major software company MicroStrategy(MSTR) announced on Friday that it has generated $650 million from bond sales to make further investments in Bitcoin (BTC).
Accordingly, yesterday, Friday, MicroStrategy disclosed that it has sold $650 million of its own corporate bonds, which carry an interest rate of 0.75% and mature in 2025. The Bitcoin Blueprint interest payments are due semi-annually, and are payable on 15 June and 15 December.
In the accompanying press release, the software producer confirms that the funds raised will be invested in the market-leading crypto currency:
„MicroStrategy intends to invest the net proceeds from the bond sales in Bitcoin, unless the generated capital is required for other corporate purposes.“
The sales come just days after the company first announced its intention to sell bonds for the purpose of investing in Bitcoin. As Cointelegraph previously reported, MicroStrategy’s original goal was to raise „only“ $400 million. With $650 million, the software company could buy more than 36,300 BTC at the current price.
MicroStrategy caused a stir this year when the company made public that it had invested large parts of its assets in Bitcoin. In the run-up to the investment, CEO Michael Saylor said his company was „sitting on a $500 million melting iceberg“ that needed to be saved.
MicroStrategy currently owns 40,824 BTC, which is currently worth more than $734 million
This means that the company has made a profit of almost $260 million from the switch to Bitcoin alone.
However, some Wall Street analysts warn that MicroStrategy may now be over-invested in Bitcoin. Until recently, the volatility of the crypto currency was the main reason for many institutional investors to distance themselves from it. Citibank has recently downgraded MicroStrategy’s stock because it believes that the company is „disproportionately“ invested in Bitcoin.
MicroStrategy is probably the largest investor in Bitcoin among the companies, but it is by no means the only one. After publicly listed companies such as Galaxy Digital (GLXY), Square (SQ) and Hut 8 Mining Corp (Hut-8) each invested between $36 million – $134 million in Bitcoin, the American insurance company MassMutual, for its part, this week entered the market-leading crypto currency with $100 million.