MicroStrategy successfully sold 500 million dollar banknotes (“Notes”) announced that it would sell it on June 8th at a press conference, to buy Bitcoin. The notes were sold to eligible institutional buyers in a private offering under Rule 144a under the Securities Act of 1933. All were sold to persons outside the United States under Regulation S under the Securities Act.
At the time of the presentation, MicroStrategy estimated that the net proceeds from the sale of the bonds and related collateral after deducting discounts, initial commissions and estimated offering expenses payable by MicroStrategy would be $488 million.
MicroStrategy confirms the sale of banknotes
In a press release issued earlier today, MicroStrategy states that all notes and warrants have been sold to eligible institutional buyers under the Securities Act.
“The debentures are wholly and unconditionally secured on a better secured basis, jointly and severally, by MicroStrategy Services Corporation, a wholly owned subsidiary of MicroStrategy, and may likewise be secured by certain MicroStrategy affiliates that may be formed or acquired after the close of Subtraction.”
There has been significant interest in purchasing the bank notes offered by the company as the company is reported to have received orders in excess of $1.5 billion for banknotes worth $500 million.
Executive Director Michael Saylor He who has always been bullish on Bitcoin said the plan was to buy more Bitcoin to add to his portfolio which now stands at around 92,079 Bitcoin.
The press release also issued a notice;
“This press release does not constitute an offer to sell or the solicitation of an offer to buy securities or any other securities, nor shall there be any sale of related notes or warranties in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful under the securities laws of any state or jurisdiction.”
The company has not yet revealed when it will buy more bitcoin.
MicroStrategy for a new subsidiary
The company also announced a new subsidiary, MacroStrategy LLC, which now owns all the bitcoins the company has purchased so far. This is supposed to be a play on separating the investment portfolio from the core business of MicroStrategy, a supplier of business application software.
Related reading | Why MicroStrategy decided to pay its board of directors in Bitcoin
MicroStrategy is the largest publicly traded business intelligence and analytics company. The ticker symbol is MSTR and is publicly traded on the NASDAQ stock exchange.
The stock market reacted positively to this news. MicroStrategy’s shares are up 80% at the time of writing. MicroStrategy’s market capitalization is now around $5.82 billion, a massive jump from $5.03 billion yesterday.
Bitcoin Market Reaction to MicroStrategy
Follow this news Paul Tudor Jones He declares that he wants to allocate 5% of his wallet to Bitcoin. Giving Bitcoin the bump it needed to finally get over the $40k hump after news of Tesla resuming payments with Bitcoin shut it down. Bitcoin is up 9% today and is just over $40K.
While this is by no means a bullish rally that investors had hoped for, it does show that institutional investors remain optimistic about the future of the asset as its rally begins from a slump about a month ago.
MicroStrategy currently owns $3.7 billion worth of Bitcoin at today’s prices, all purchased 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