MicroStrategy, the world's largest publicly traded business intelligence company, is in the news again with their latest investment into bitcoin, a whopping $1.05 billion in a debt-for-bitcoin offering.
“MicroStrategy estimates that the net proceeds from the sale of the notes will be approximately $1.03 billion, after deducting the initial purchasers’ discounts and commissions and estimated offering expenses payable by MicroStrategy. “ reads the company’s statement.
Under the leadership of chairman and CEO Michael Saylor, MicroStrategy became an early adopter of companies buying bitcoin as an investment. The raise is Micorostrategy’s business strategy of buying as much bitcoin as it can. “MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoin. “ the company said.
The company has been raising money for the sole purpose of buying bitcoins.
What Has MicroStrategy Been Up To?
MicroStrategy has been one of the most vocal proponents of Bitcoin, owning 71,039 of the coins already. Under the leadership of chairman and CEO Michael Saylor, MicroStrategy became an early adopter of companies buying bitcoin and has its main strategy to buy as much Bitcoin as it possibly can view them as a long-term holding. Microstrategy held a “Bitcoins for Corporations” conference to share their bitcoin playbook with other global companies on February 3rd and 4th. The event has 22031 registrations with over 8000 attendees. The attendees included Richard Lee, Sr. Director of Treasury of SpaceX.
The sessions are available online for free and include Microstrategy’s Bitcoin corporate playbook as well. As of Tuesday, Microstrategy’s bitcoins are worth more than $3.5 billion.
Investment In Cryptocurrency Continues To Spike
Bitcoin has crossed the $57,000 mark as of today. The boost is credited to Tesla buying $1.5 billion of the cryptocurrency earlier this month. Other leading firms, such as the UK-based investment firm, Ruffer, bought bitcoin worth $744 million. The $8.7 trillion asset manager BlackRock Inc has authorized two of its funds to invest in bitcoins. BlackRock could use bitcoin derivatives, among other assets, under the BlackRock Strategic Income Opportunities and the BlackRock Global Allocation Fund.
BlackRock’s move allows its clients complete exposure to cryptocurrency. Credit giant Mastercard Inc. and Bank of New York Mellon Corp. are making it easier for its users to use cryptocurrencies. Mastercard has already partnered with crypto card providers such as WireX and BitPay, while BNY has said it will hold, transfer and issue crypto tokens such as Bitcoin for its institutional customers. All these moves by leading global firms reassure that bitcoin and other cryptocurrencies are here to stay, and a stable value is to be achieved sooner than later.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.