MicroStrategy is a business intelligence company based in the United States. The enterprise is operated under the supervision of Bitcoin Maximalist and advocate Michael Saylor. Saylor has been busy with making Bitcoin as much as institutional-friendly as possible. He has recently announced the formation of a Crypto Mining Council. A few months back, he also set up a Bitcoin educational program that works to make crypto education more common among institutional investors.
MicroStrategy is the largest public trading enterprise in the world in terms of Bitcoin holdings. At the start of the month, the company announced the issuance of convertible notes. The $400 million bonds due in 2028 would allow the company to purchase more Bitcoins. Before the current purchase, MicroStrategy had more than 90 thousand Bitcoin units.
MicroStrategy Claims that the Recent Bitcoin Purchase is Part of the Core Business Development Policy
A new tweet from Michael Saylor’s official Twitter account confirms the purchase of 13,005 new Bitcoins. At present, the crypto reserves are placed under the custody of a subsidiary firm. MacroStrategy LLC. Now holds about 105,085 Bitcoins in the balance sheets. Saylor also added that about $489 million had been spent with an average cost of $37,170 per Bitcoin.
The proceeds for the current purchase have been collected against the distribution of $400 million junk bonds. About $100 million oversubscriptions were registered on the bonds. In the end, it raised $500 million to be reinvested into Bitcoin. After the deduction of commission and other costs, the company has already announced that the remaining amount ($489 million) would be used to acquire more Bitcoins as a part of its core Business Development Policy.
After becoming the proud owners of more than 105K Bitcoins, MicroStrategy has announced bigger purchases in the future. Peter Schiff, a crypto cynic, has also claimed that Michael Saylor is going overboard, and he is going crazy with crypto fever. His abrasive remarks were found in the comment section of the tweet, where Saylor announced the issuance of a convertible note.
The company seems to be mapping the road to inject another $1 billion into the DeFi space. This would be done by printing stocks and using them to raise proceeds for a series of purposes. The main focus of this new plan is to add more Bitcoins which could help to keep the bull market intact for a longer period.