MicroStrategy is one of the loudest crypto advocates listed on Wall Street. Now, the Michael Sayer-led company is engaging in one of the first ever corporate bond sales that specifically earmarks proceeds for bitcoin purchases.
MicroStrategy’s strategy? buy lamp
After initially planning to issue a $400M loan, by the time the deal opened on Monday, the company saw huge demand. Sayer and team picked that amount up to $500M, with Tuesday’s junk bond sale. These types of bonds typically offer more aggressive returns, while running a higher risk of default. As per reports, the secured notes where reportedly sold at a yield of 6.125%, around 6.25% and 6.5% after the first pricing discussion. Investment bank Jeffries led the offering.
news comes later a bevy of bitcoin purchases in the first half of this entire year. To start the year, MicroStrategy closed 20,000 BTC with a whopping price tag of over $1B. The company has raised about $55K per . But grabbed a few hundred more coin. After the weekend at the Bitcoin 2021 conference in Miami, Sailor is ready for more.
To date, the firm has an average per . Has over 90,000 BTC with coin Price just shy of $25K. Nonetheless, bitcoin’s second quarter decline is evident; MicroStrategy reported in a filing this week that the crypto’s fluctuating price lost nearly a quarter-billion dollars in its next earnings report. Having issued convertible bonds in the past to make crypto purchases, Seller is ready to buy the dip with this first corporate bond sale.
Related Reading | Chances of bitcoin being exchanged are zero, says Saylor
Corporate bonds attracting some attention
This isn’t MicroStrategy’s first “first”. The company was one of the first to pay its board of directors in bitcoin, and Saylor was led by the first firm to create a modified corporate strategy that integrates bitcoin. Saller’s hyper-fixation on bitcoin in particular has drawn a fair share of critics, but beyond that, Microstrategy’s business intelligence products are still finding success with substantial Fortune 500 customers in their wheelhouse.
This week’s bond offering is notable not only for being the first of its kind, but also by the response it has received. According to the report, the company increased its offering to $500M in notes, but received more than $1.5B in orders for the offering – including a large number of hedge funds. Despite the recent drop in bitcoin, many major investors are still holding back a bit. coming weeks can specifically state around their aggressive approach.
MicroStrategy has come back to earth after yielding substantial attention earlier this year with Bitcoin purchases. | Source: $MSTR-NASDAQ on TradingView.com
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