Microstrategy Received Over $1.5B In Orders To Fund BTC Purchases

Microstrategy received over $1.5 billion in orders to fund Bitcoin purchases while still being the loudest crypto advocate listed on Wall Street so let’s read more in our latest bitcoin news today.

the Michael Saylor-led company is engaging in one of the first corporate bond sales which earmarks the proceeds for Bitcoin purchases. After planning to issue $400 million of debt by Monday, the company saw an increase in demand, and Saylor along with his team elected to up the amount to $500 with the junk bond sale on Tuesday. These types of bonds offer more aggressive yields while running a risk of default and the secure notes were sold at a yield of 6.125% as per reports, after earlier pricing discussions around 6.25%.

Microstrategy received over $1.5 billion in orders and the news came after a bevy of Bitcoin purchases throughout the first half of the year so to start the year, the company locked in about 20,000 BTC with a price tag of $1 billion. The company got a few hundred more in the past few weeks and after the Miami Bitcoin conference, Saylor said he is ready for more. Up to this date, the company owns up to 90,000 BTC with an average per coin price below $25K but bitcoin’s second-quarter drop was evident as the company reported in a filing this week a quarter billion hit in the next earnings report from the fluctuating price. After issuing a convertible bond in the past to make more purchases, Saylor seems to be on buying dip with the first bond sale.

This is not a first for the company as it was also one of the first to pay their board of directors in Bitcoin and saylor even led the company to be the first corporate strategy that integrated Bitcoin. His focus on Bitcoin drew a fair share of critics but all that put aside, the business operations of the company are still seeing success with major Fortune 500 customers in their backings. This week’s bond offering is notable because it is the first of its kind but also from the response it got. The company upped their offering to $500M in notes but also received an excess of $1.5 billion in orders for offering a large number of hedge funds as per the reports. Despite the BTC dip, major investors all got chomped up at the bit and the weeks to come will be telling us a different perspective.

Source: https://www.dcforecasts.com/bitcoin-news/microstrategy-received-over-1-5b-in-orders-to-fund-btc-purchases/