MicroStrategy Plans to Raise $ 600 Million Again to Buy More Bitcoin
MicroStrategy announced in a press release on February 16 that it intends to conduct a private placement of $ 600 million of convertible senior bonds for qualified institutional investors.
MicroStrategy’s investment in Bitcoin has Paid Off
Bitcoin is gaining momentum due to the continued investment of large traditional institutions. Recently, more and more companies are starting to use cryptocurrency and are looking for ways not to miss the opportunity. But MicroStrategy is ahead of the curve, being one of the first firms to recognize BTC as store of value and a reliable investment.
This is the second time a public company has tried to raise funds to pump its BTC packages. Last December, the company, led by Saylor, filed a $ 400 million senior convertible bond offering.
The company said the bills would be converted into cash or into Class A common stock, or even both assets. Most importantly, MicroStrategy intends to use the net proceeds from the sale of the notes to purchase additional Bitcoins.
For many months, the firm has demonstrated support for Bitcoin and other cryptocurrencies. It also offered Bitcoins to 1,400 public companies.
Since 2020, the company has been actively investing in the largest digital currency, deftly buying almost all significant drops. In February, it acquired 295 BTC worth about $ 10 million in its wallet. The company is currently one of the largest Bitcoin holders in the world, with more than 71079 coins worth more than $ 3.4 billion in storage.
Now that other companies like Tesla and Square have made a similar move to invest in Bitcoin, the asset has experienced explosive growth. The combined investment of MicroStrategy and other institutions and corporations in Bitcoin is one of the most powerful driving forces that pushed BTC to reach the $ 50,700 ATH. Thanks to these large companies and institutional investors, cryptocurrencies and the space in general have become more trusted.
$ 25 billion in BTC by the end of 2021
For the past few weeks, Bitcoin has remained one of the market leaders, second only to Ethereum. The most valuable digital coin is considered by leading multibillion-dollar public companies. Most people now consider Bitcoin as a strategic investment, citing its excellent properties, including as a protection against inflation.
Last week, Michael Saylor, CEO of MicroStrategy, quoted NYDIG founder Ross Stevens as giving an estimate to organizations that will funnel $ 25 billion into cryptocurrency and Bitcoin by the end of the year.
Microstrategy isn’t the only company to invest in cryptocurrency; no doubt the interest of other traditional firms has boosted Bitcoin’s value. Apple Pay also recently provided Bitcoin as a payment method for its users. To achieve this goal, the leading payment platform BitPay was included in the application.
At the moment, analysts are predicting a general bullish trend for the Cue Ball in the short term, although the new growth was quite short-lived.