MicroStrategy announced on Tuesday that it had prepared $600 million in convertible bonds for further Bitcoin investments. Just one day later, the software manufacturer increases the amount by another $300 million. The company announced this via an official press release.
Accordingly, the goal is to sell convertible bonds with a maturity date in 2027 to solvent institutional buyers. The company expects that proceeds from sales will bring at least $900 million. If investors decide to purchase additional bonds, this could increase investment up to one billion US dollars.
With the current all-time high of more than 51 thousand US dollars, MicroStrategy’s Bitcoin holdings are likely to increase by a further 19 thousand coins. This would mean that the company would hold an equivalent of more than 3.5 billion US dollars, which corresponds to about 90 thousand BTCs and a share of 0.48% of the total Bitcoin market.
Bitcoin Investments Are Already Paying Off
With its $250 million purchase in August 2020, MicroStrategy did well. The investment has more than doubled thanks to the current Bitcoin rally. This positive development makes further investments a no-brainer.
With his Bitcoin euphoria, Saylor was also able to inspire other well-known CEOs. Most recently, Elon Musk invested 1.5 billion US dollars in the crypto-coin.
All MicroStrategy Bitcoin Investments:
- August 2020. Initial Bitcoin purchase with $250 million available capital;
- September 2020. Another Bitcoin investment: 16,796 BTCs for $175 million;
- December 2020. Purchase of 29,646 BTCs for $650 million in debt incurred after the sale of bonds;
- January 2021. 314 BTCs for $10 million;
- February 2021. Once again $10 million, this time an equivalent is 295 BTCs;
- Probably February 2021. Another $900 million of borrowed capital will enable an increase of around 19,000 BTCs.
Bitcoin Continues to Increase Significantly
The Bitcoin price continues to show its bullish side and, according to the data from CoinMarketCap, was able to reach the mark of 52 thousand US dollars for the first time.
Drivers of the ongoing rally are likely to be institutional investors that are increasingly investing in the crypto market. In addition, there is great media coverage, which ensures that Bitcoin leaves no room for other cryptocurrencies and assets.
While Bitcoin is increasing significantly, many of the analog assets lose or stagnate at a constant price level. By comparison, when BTC hit an all-time high of over $51,000, the gold price fell below $1,800 at the same moment.
With the planned investment of $900 million in BTC, MicroStrategy remains true to its investment strategy. Likewise, the company is thus backing the Bitcoin rally. The project also has a positive side effect on the company’s own share price. We can therefore expect further investments from the software manufacturer in the future.
Further price increases are very likely and we can certainly look forward to the next all-time high quite soon! What do you guys think? Feel free to share your thoughts in the comments. Have a great weekend!