More

    MicroStrategy Sells $500 Million Notes To Buy Bitcoin

    MicroStrategy has successfully sold off $500 million worth of notes (“the notes”) which it announced it was selling on June 8th in a press conference, to buy Bitcoin. The notes were sold to qualified institutional buyers in a private offering in reliance to Rule 144A under the Securities Act of 1933. They were all sold to persons outside of the United States in accordance with Regulation S under the Securities Act.
    At the time of offering, MicroStrategy estimated that the net proceeds from the sale of the notes and related guarantees after deducting initial discounts and commissions and estimated offering expense payable by MicroStrategy would be $488 million.
    MicroStrategy Confirms Sale Of Notes
    In a press release that came out earlier today, MicroStrategy states that the notes and guarantees were all sold to qualified institutional buyers under the Securities Act.
    “The notes are fully and unconditionally guaranteed on a senior secured basis, jointly and severally, by MicroStrategy Services Corporation, a wholly owned subsidiary of MicroStrategy, and may be similarly guaranteed by certain subsidiaries of MicroStrategy that may be formed or acquired after the closing of the offering.”
    There was massive interest in buying the notes offered by the corporation as the company reportedly received more than $1.5 billion in orders for the notes worth $500 million.
    Related Reading | MicroStrategy Receives Over $1.5B In Orders For $500M Notes To Fund Bitcoin Purchases
    CEO Michael Saylor who has always been bullish on Bitcoin said the plan was to buy more Bitcoin to add to its portfolio which now sits at approximately 92,079 Bitcoins.
    The press release also issued a notice;
    “This press release shall not constitute an offer to sell or a solicitation of an offer to buy the notes or any other securities, nor shall there be any sale of the notes or the related guarantees in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful under the securities laws of any such state or jurisdiction.”
    The company is yet to disclose when it will purchase more Bitcoin.
    MicroStrategy Unveils A New Subsidiary
    The corporation also announced a new subsidiary, MacroStrategy LLC, which now holds all of the bitcoins the company has purchased thus far. This is assumed to be a play to separate the investment portfolio from the core business of MicroStrategy, which is an enterprise business application software vendor.
    Related Reading | Why MicroStrategy Decided To Pay Its Board Of Directors In Bitcoin
    MicroStrategy is the largest independent publicly-traded analytics and business intelligence company. Its ticker symbol is MSTR and it is traded publicly on the NASDAQ.
    The stock market has reacted positively to this news. Shares of MicroStrategy are up 80% as at the time of this writing. MicroStrategy’s market cap now sits at around $5.82 billion, a massive jump from $5.03 billion as at yesterday.
    Source: BTCUSD on TradingView.com
    Bitcoin Market Reaction To MicroStrategy
    This news follows Paul Tudor Jones announcing that he wants to allocate 5% of his portfolio to Bitcoin. Giving Bitcoin the bump it needed to finally get over the $40k hump after news of Tesla resuming payments with Bitcoin pushed it closed. Bitcoin price is up 9% today and is currently a little over $40k.
    While this is by no means the bullish rally that investors have been hoping for but it shows that institutional investors are still optimistic about the future of the asset as it begins its climb back from its crash about a month ago.
    MicroStrategy currently owns $3.7 billion worth of Bitcoin according to today’s prices, all of which were bought at an average of $24,000 per Bitcoin. This amount is higher than any other publicly-traded company in the world.
    Chart from TradingView.com

    Related articles

    Comments

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Share article

    Latest articles

    Newsletter

    Subscribe to stay updated.

    bitcoin
    Bitcoin (BTC) $ 41,209.00
    ethereum
    Ethereum (ETH) $ 2,441.19
    tether
    Tether (USDT) $ 0.999312
    binance-coin
    Binance Coin (BNB) $ 327.79
    cardano
    Cardano (ADA) $ 1.30
    xrp
    XRP (XRP) $ 0.740199
    usd-coin
    USD Coin (USDC) $ 0.999534
    dogecoin
    Dogecoin (DOGE) $ 0.206870
    polkadot
    Polkadot (DOT) $ 16.28
    binance-usd
    Binance USD (BUSD) $ 0.999094
    uniswap
    Uniswap (UNI) $ 21.15
    bitcoin-cash
    Bitcoin Cash (BCH) $ 538.86
    litecoin
    Litecoin (LTC) $ 142.40
    chainlink
    Chainlink (LINK) $ 21.37
    solana
    Solana (SOL) $ 33.93
    wrapped-bitcoin
    Wrapped Bitcoin (WBTC) $ 41,177.00
    stellar
    Stellar (XLM) $ 0.286244
    matic-network
    Polygon (MATIC) $ 1.04
    ethereum-classic
    Ethereum Classic (ETC) $ 50.37
    theta-token
    Theta Network (THETA) $ 6.05
    internet-computer
    Internet Computer (ICP) $ 41.81
    vechain
    VeChain (VET) $ 0.087132
    dai
    Dai (DAI) $ 0.999851
    compound-usd-coin
    cUSDC (CUSDC) $ 0.022102
    okb
    OKB (OKB) $ 18.22
    filecoin
    Filecoin (FIL) $ 51.36
    cdai
    cDAI (CDAI) $ 0.021560
    tron
    TRON (TRX) $ 0.063496
    terra-luna
    Terra (LUNA) $ 10.64
    monero
    Monero (XMR) $ 234.92
    aave
    Aave (AAVE) $ 314.47
    eos
    EOS (EOS) $ 4.03
    compound-ether
    cETH (CETH) $ 48.98
    ftx-token
    FTX Token (FTT) $ 34.43
    amp-token
    Amp (AMP) $ 0.073385
    cosmos
    Cosmos (ATOM) $ 12.54
    neo
    NEO (NEO) $ 45.90
    crypto-com-chain
    Crypto.com Coin (CRO) $ 0.127376
    pancakeswap-token
    PancakeSwap (CAKE) $ 15.61
    shiba-inu
    Shiba Inu (SHIB) $ 0.000006
    the-graph
    The Graph (GRT) $ 0.612656
    leo-token
    LEO Token (LEO) $ 3.03
    algorand
    Algorand (ALGO) $ 0.834278
    celsius-degree-token
    Celsius Network (CEL) $ 6.18
    bitcoin-sv
    Bitcoin SV (BSV) $ 139.04
    maker
    Maker (MKR) $ 2,879.10
    klay-token
    Klaytn (KLAY) $ 1.04
    tezos
    Tezos (XTZ) $ 3.01
    iota
    IOTA (MIOTA) $ 0.872650
    axie-infinity
    Axie Infinity (AXS) $ 42.88