MicroStrategy, the business intelligence firm led by Michael Saylor, is preparing to offer 400 million worth of collateralized bonds to qualifying institutional buyers, it announced Monday.
MicroStrategy Will Invest Its Borrowed Amount In Bitcoin
The bonds will expire until 2028, and MicroStrategy will use the money from these transactions to buy more Bitcoins.This announcement comes after MicroStrategy announced that it expects a loss of $285 million in the second quarter due to fluctuations in Bitcoin prices.
Currently, MicroStrategy has 92,079 Bitcoins purchased at an average of $24,450 per Bitcoin. For this amount, MicroStrategy paid a total of $2,251 billion. The current value of Bitcoins in the hands of the company is known as approximately $ 3.3 billion.
MicroStrategy CEO and staunch Bitcoin advocate, Michael Saylor, also spoke at the Bitcoin 2021 conference in Miami over the weekend. Saylor explained how he entered the Bitcoin market and the reasons for his belief in Bitcoin. Saylor also said that adding Bitcoin to his company ‘s balance sheet has given his company the best performance in the last 10 years: “ We say Bitcoin is hope. Bitcoin solves everything. This was also the case for our own stock. He gave our company the water of life. Our morale has increased significantly. We had the best quarter we’ve had in the last 10 years. ”
Michael Saylor Says Their Bitcoin Purchase Has Very Positive Consequences For Their Company
Saylor said the Bitcoin purchases provide financing for MicroStrategy’s services and to build a brand awareness, and he also stated that he is considering buying more digital assets: “The first big milestone was when I converted the cash I borrowed into an asset, this asset 10% per year. We realized that we could borrow more than 5% or less on our debt as we appreciated more than , so it made sense for us to borrow as much as possible and turn it into this asset.”
Although MicroStrategy stocks were trading at a 275% higher price than last year, they lost 22% compared to last month after the cryptocurrency crash last month. Bitcoin prices surpassed $64,000 in mid-April, breaking his all-time high price record.