{"id":44309,"date":"2021-06-14T18:44:27","date_gmt":"2021-06-14T15:44:27","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=44309"},"modified":"2025-08-31T16:24:15","modified_gmt":"2025-08-31T13:24:15","slug":"microstrategy-raises-500-million-to-buy-bitcoin","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/microstrategy-raises-500-million-to-buy-bitcoin\/","title":{"rendered":"MicroStrategy raises $500 million to buy Bitcoin"},"content":{"rendered":"<p>Software-analytics provider MicroStrategy Inc. issued convertible senior notes for $500 million due 2028. The proceeds, which MicroStrategy valued at $488 million, will be used to buy Bitcoin.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">MicroStrategy Completes $500 Million Offering of 6.125% Senior Secured Notes Due 2028 with <a href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&#038;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> Use of Proceeds. <a href=\"https:\/\/twitter.com\/MicroStrategy?ref_src=twsrc%5Etfw\">@MicroStrategy<\/a>\u2019s existing approximately 92,079 bitcoins are being held by a newly formed subsidiary, MacroStrategy LLC. <a href=\"https:\/\/twitter.com\/search?q=%24MSTR&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$MSTR<\/a><a href=\"https:\/\/t.co\/avdKhHDLMH\">https:\/\/t.co\/avdKhHDLMH<\/a><\/p>\n<p>\u2014 Michael Saylor (@michael_saylor) <a href=\"https:\/\/twitter.com\/michael_saylor\/status\/1404434078795972613?ref_src=twsrc%5Etfw\">June 14, 2021<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The coupon for the instrument was set at 6.125% per year. <a href=\"https:\/\/u1f987.com\/en\/news\/bloomberg-demand-for-microstrategy-bonds-hits-1-6-billion\">strong demand<\/a> from investors allowed the offering to be increased from the initial $400 million and the range narrowed from 6.25-6.50% per year.<\/p>\n<p>The bonds were collateralized by the company&#8217;s assets, including Bitcoin and other cryptocurrencies acquired during and after the offering. According to the press release, MicroStrategy owns 97 079 BTC (about $3.745 billion at the rate at the time of writing).<\/p>\n<p>These coins are not included in the collateral. They have been transferred to a recently registered subsidiary \u2014 MacroStrategy.<\/p>\n<p>ForkLog analyst Alexander Kondratyuk is convinced that many Wall Street participants view MicroStrategy&#8217;s bonds as a vehicle to bet on Bitcoin&#8217;s growth within the current regulatory framework.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abThe SEC&#8217;s attitude toward fund investments even in regulated Bitcoin futures remains<a href=\"https:\/\/u1f987.com\/en\/news\/sec-cautions-on-bitcoin-futures-as-highly-speculative\">ambiguous<\/a>. The purchase of the Grayscale Bitcoin Trust securities is accompanied by liquidity constraints during the <a href=\"https:\/\/u1f987.com\/en\/news\/grayscale-halts-gbtc-investments-after-discount-forms\">lock-up period<\/a> and is not available today. There is also<a href=\"https:\/\/u1f987.com\/en\/news\/sec-delays-vanecks-bid-to-launch-a-bitcoin-etf-until-june-2021\">no clarity<\/a> with regard to the SEC&#8217;s Bitcoin ETF approval timelines. The purchase of similar<a href=\"https:\/\/u1f987.com\/en\/news\/canadian-bitcoin-etf-expands-positions-amid-market-correction\">instruments<\/a> in Canada or a direct purchase of digital gold on<a href=\"https:\/\/u1f987.com\/en\/news\/coinbase-shares-begin-trading-on-nasdaq-market-capitalisation-tops-100bn\">Coinbase-listed<\/a> Coinbase for various reasons may not satisfy some investor categories\u00bb, he noted.<\/p>\n<\/blockquote>\n<p>The expert noted that the coupon rate of 6.125% looks attractive in an environment of near-zero rates by the Fed and very tight spreads on high-yield bonds. He said that investors can support the yields of investment portfolios and obtain an option to buy shares of the software maker, which have a high correlation with Bitcoin&#8217;s price. In the event of default, market participants will receive \u201cbitcoins and other cryptocurrencies purchased during and after the offering\u201d.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abOversubscription on the securities during this issue could have manifested itself\u00bb \u2014 Kondratyuk added, noting that Morgan Stanley clients, who acted as one of the bookrunners, may have driven strong demand. Previously, this financial conglomerate<a href=\"https:\/\/u1f987.com\/en\/news\/morgan-stanley-acquires-11-stake-in-microstrategy\">acquired<\/a> 11% of MicroStrategy&#8217;s shares.<\/p>\n<\/blockquote>\n<p>MicroStrategy&#8217;s shares are listed on Nasdaq under the ticker MSTR. In pre-market trading on June 14, their price rose 14% to $587. As of writing the securities were trading around $586.89.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"502\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/mcro-1024x502.png\" alt=\"MicroStrategy \u043f\u0440\u0438\u0432\u043b\u0435\u043a\u043b\u0430 $500 \u043c\u043b\u043d \u043d\u0430 \u043f\u043e\u043a\u0443\u043f\u043a\u0443 \u0431\u0438\u0442\u043a\u043e\u0438\u043d\u0430\" class=\"wp-image-138922\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/mcro-1024x502.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/mcro-300x147.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/mcro-768x377.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/mcro-1536x754.png 1536w, https:\/\/u1f987.com\/wp-content\/uploads\/mcro.png 1828w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>Chart of MSTR\/USD on Nasdaq. Data: <a href=\"https:\/\/ru.tradingview.com\/chart\/00O1pBoT\/\">TradingView<\/a>.<br \/><\/figcaption><\/figure>\n<p>Earlier, MicroStrategy CEO Michael Saylor said that Bitcoin miners create jobs, bring capital, and promote economic prosperity in the jurisdictions where they operate.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&#038;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> is durable over time because Bitcoin miners bring jobs, capital, &#038; economic prosperity to every jurisdiction where they operate. Bitcoin will have political support from progressive local, state, &#038; federal leaders because it\u2019s in the best interests of their constituents. <a href=\"https:\/\/t.co\/5FYBN1tDPF\">https:\/\/t.co\/5FYBN1tDPF<\/a><\/p>\n<p>\u2014 Michael Saylor (@michael_saylor) <a href=\"https:\/\/twitter.com\/michael_saylor\/status\/1404135098094600192?ref_src=twsrc%5Etfw\">June 13, 2021<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>He noted that the International Brotherhood of Electrical Workers has expressed support for the mining industry, urging authorities to drop a potential moratorium on cryptocurrency mining in New York state.<\/p>\n<p>As a reminder, in December 2020 MicroStrategy, to raise funds for buying digital gold, issued <a href=\"https:\/\/u1f987.com\/en\/news\/microstrategy-raises-650-million-for-bitcoin-purchase\">unsecured convertible senior notes worth $650 million<\/a>.<\/p>\n<p>In February 2021 the company sold to investors <a href=\"https:\/\/u1f987.com\/en\/news\/microstrategy-raises-more-than-1-billion-in-debt-financing-to-buy-bitcoin\">similar notes totaling $1.05 billion<\/a>.<\/p>\n<p>Subscribe to ForkLog&#8217;s news on <a href=\"https:\/\/vk.com\/forklogcom\" target=\"_blank\" rel=\"nofollow noopener\">VK<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The software-analytics provider MicroStrategy Inc. issued convertible senior notes for $500 million due 2028. The proceeds, which the company valued at $488 million, will be used to buy Bitcoin.<\/p>\n","protected":false},"author":1,"featured_media":44310,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[18,1431,1156,1207],"class_list":["post-44309","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin","tag-bonds","tag-institutional-investors-and-whales","tag-microstrategy"],"aioseo_notices":[],"amp_enabled":true,"views":"19","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/44309","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=44309"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/44309\/revisions"}],"predecessor-version":[{"id":44311,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/44309\/revisions\/44311"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/44310"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=44309"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=44309"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=44309"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}