MicroStrategy is one of the top advocates of cryptography listed on Wall Street. Now, the company led by Michael Saylor is participating in one of the first ever corporate bond sales that specifically allocates proceeds from bitcoin purchases.
MicroStrategy? buy the deep
After initially planning to issue $400 million in debt, by the time the deal was launched on Monday, the company had seen massive demand. Saylor and his team chose to increase that amount to $500 million through Tuesday’s junk bond sale. This type of bond generally offers more robust returns, with a higher risk of default. The bonds, which are secured with a yield of 6.125%, were sold off, according to reports, after previous pricing discussions around 6.25% and 6.5%. Investment bank Jefferies led the show.
The news comes next A batch of Bitcoin purchases during the first half of the year. To start the year, MicroStrategy locked in 20,000 BTC at an exorbitant price of over $1 billion. The company has taken in a few hundred more in recent weeks at about $55,000 each Currency. After a weekend at the Bitcoin 2021 conference in Miami, Saylor is ready for more.
To date, the company owns over 90,000 BTC on average per Currency The price is just shy of $25,000. However, the decline of Bitcoin in the second quarter is evident; In a statement this week, MicroStrategy reported the arrival of nearly a quarter of a billion dollars in its next earnings report from the fluctuating price of cryptocurrencies. Having issued convertible bonds in the past for crypto purchases, Saylor appears intent on buying the dip with its first-ever corporate bond sale.
Related reading | Saylor says there is a zero chance of exchanging bitcoin
Corporate Bonds That Get Some Attention
This is not the first “first” for MicroStrategy. The company was also one of the first to pay its board members in Bitcoin, and Saylor led the company to be the first to develop a modified corporate strategy for Bitcoin incorporation. Saylor’s excessive fixation on Bitcoin in particular has attracted a fair share of critics, but regardless, MicroStrategy’s business intelligence products are still seeing success with core Fortune 500 customers in their wheelhouse.
This week’s bond offering is also notable not only for being the first of its kind, but also from the response it’s received. The company raised its bids to $500 million in bonds, but received more than $1.5 billion in orders for the bid — including a large number of hedge funds, according to reports. Despite the recent decline in bitcoin, it seems that many major investors are still chomping on a bit. Next weeks It can be especially expressive about their aggressive perspective.
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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