MicroStrategy receives $ 1.6 billion for its Bitcoin bonds

MicroStrategy , Michael J. Saylor’s company, saw $ 1.6 billion in less than 24 hours for its Bitcoin-related Junk bond offering 

As reported, the company famous, famous for bitcoin in its budget, it would be flooded with orders, including the interest of a large number of hedge funds.

Not only that, MicroStrategy Inc. would also have increased the size of its Junk bond offering to fund the purchase of more Bitcoin . In practice, from the initial $ 400 million, the company confirmed yesterday alone that it had sold $ 500 million worth of notes and that they were the first of their kind in the high yield market. 

In essence, the first corporate bonds with proceeds destined for the purchase of BTC issued by MicroStrategy, expect a yield slightly above 6%. Specifically, the report comments as follows:

“It sold the guaranteed notes at a yield of 6.125%, according to a person with knowledge of the subject, lower than the first discussions on prices of 6.25% -6.5%.”

Saylor’s focus on Bitcoin, including making it an official corporate strategy, has drawn the ire of critics. Certainly, the strategy of promoting this type of high-risk but also higher-yielding sell took place in a week when the trading range for BTC is $ 31,188 – $ 39,151. 

MicroStrategy and Bitcoin: strategies for accumulating BTC

The new $ 1.6 billion in orders just “cashed” by MicroStrategy have been publicly declared as the amount to be used to buy Bitcoin. 

Already at the end of April 2021, MicroStrategy had announced the results of the first quarter of 2021, emphasizing that its strategy to accumulate bitcoins was proving to be successful 

And in fact, the company has published that it holds 20,857 bitcoins , which at the price at that time are equivalent to over 1 billion dollars. Not only that, as of mid-May MicroStrategy had accumulated 91,850 Bitcoins , which it says were bought for about $ 2.25 billion at an average of about $ 24,450 per token.

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