MicroStrategy Sold Successfully $500 million notes (“Notes”) which he announced at a press conference on June 8 to buy bitcoin. The notes were sold to qualified institutional buyers in a private offering pursuant to Rule 144A under the Securities Act of 1933. They were all sold to persons outside the United States in accordance with Regulation S under the Securities Act.
At the time of the Offering, MicroStrategy estimated net proceeds from the sale of notes and related guarantees after deducting initial discounts and commissions, and estimated offering expense payable by MicroStrategy to be $488 million.
MicroStrategy confirms sale of notes
In a press release revealed earlier today, Microstrategy said that all notes and guarantees under the Securities Act were sold to qualified institutional buyers.
“Note The whole and unconditional guarantee is given on a senior secured basis, jointly and severally, by MicroStrategy Services Corporation, a wholly owned subsidiary of MicroStrategy, and may likewise be guaranteed by some of MicroStrategy’s subsidiaries. which may be created or acquired after the closure.
There was huge interest in buying the notes offered by the corporation as the company had reportedly received orders for over $1.5 billion for the $500 million notes.
CEO Michael Saylor Joe, who has always been bullish on bitcoin, said that the plan was to buy more bitcoins to add to his portfolio which now sits at around 92,079 bitcoins.
The press release also issued a notice;
“This press release shall not constitute an offer to sell or offer to sell notes or any other securities, nor shall there be any sale of notes or related guarantees in any state or jurisdiction in which such offer, solicitation, or sale shall be unlawful under the securities laws of any such State or jurisdiction.”
The company has not yet disclosed when it will buy more bitcoins.
MicroStrategy unveils a new subsidiary
The corporation also announced a new subsidiary, MacroStrategy LLC, which holds all the bitcoins purchased by the company so far. This is considered a play to separate the investment portfolio from the core business of Microstrategy, an enterprise business application software vendor.
Related Reading | Why MicroStrategy Decided to Pay Its Board of Directors in Bitcoin
MicroStrategy is the largest publicly traded independent analytics and business intelligence company. Its ticker symbol is MSTR and it is publicly traded on the NASDAQ.
The stock market has given a positive response to this news. MicroStrategy shares are up 80% as of the time of this writing. MicroStrategy’s market cap now stands at about $5.82 billion, a huge jump from yesterday’s $5.03 billion.
Bitcoin Market Reaction to Microstrategy
this news is like this Paul Tudor Jones Announcing that he intends to allocate 5% of his portfolio to bitcoin. It eventually needed to get over the $40k hump in order to compete with bitcoin after news closed of Tesla resuming payments with bitcoin. Bitcoin price is up 9% today and is currently at a little over $40k.
While this is by no means the bullish rally that investors had hoped for, it shows that institutional investors are still optimistic about the asset’s future as it begins to climb back from its crash almost a month ago.
MicroStrategy currently has $3.7 billion worth of bitcoins at today’s prices, all of which were purchased at an average of $3.7 billion per bitcoin. This amount is more than any other publicly traded company in the world.
Chart from TradingView.com