As Crypto Markets Dip, Michael Saylor’s MicroStrategy Raising $500,000,000 To Buy More Bitcoin
Michael Saylor’s MicroStrategy is heading to the lending markets to finance another Bitcoin buying spree.
The firm says that it will borrow approximately $500 million in the form of senior secured notes. All proceeds will go towards buying more Bitcoin at a time when the flagship crypto asset is nearly 50% down from its all-time highs.
“MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional Bitcoins.”
The business analytics software firm adds that it will borrow from “qualified institutional buyers” as well as from “persons outside of the United States”.
MicroStrategy’s original announcement stated an aim to acquire $400 million in notes but later boosted it by another $100 million.
Currently, the Saylor-led firm holds 92,079 Bitcoin which were acquired at an average price of around $24,450. With BTC trading at $33,842 at time of writing, $500 million would translate to about 14,774 Bitcoin.
During the Bitcoin 2021 Miami conference earlier this month, Saylor argued that Bitcoin’s return on investment makes borrowing in order to invest in the flagship cryptocurrency feasible.
“[MicroStrategy] realized that if that asset is going to go up by more than 10% a year and you can borrow money at 5% or 4%, or 3%, or 2%, then you should pretty much borrow as much money as you can and flip it into the asset.”
The MicroStrategy CEO also disclosed that the tech firm’s Bitcoin investments improved the company’s financial performance significantly.
“We say Bitcoin is hope. Bitcoin fixes everything…that certainly was the case with our stock…. It imbued life into the company… Morale was dramatically boosted. We just had the best first quarter we’ve had in a decade.”
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The post As Crypto Markets Dip, Michael Saylor’s MicroStrategy Raising $500,000,000 To Buy More Bitcoin appeared first on The Daily Hodl.
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Author: Daily Hodl Staff
