MicroStrategy announces the sale of USD 600 million in bonds to invest this cash to buy bitcoins (BTC).
The investment firm will issue some bonds or convertible notes senior and will put them on sale, it reported in a statement. Bonds senior allow to quantify the debts of a company and make these amounts exchangeable for cash at a time in the future, to prevent losses due to bankruptcy or forced liquidation of the company. company, Investopedia reports.
The senior bonds that MicroStrategy wants to sell will “mature” on February 15, 2027, at which time investors They may claim them or convert them into cash, as the terms are defined during the sale period of the bonds, which will last until the stock is exhausted.
The conversion rates and interest rate will also be negotiated when a price per bond is agreed between the parties. The bonds will be offered to institutional investors qualified under Regulation 144A of the United States Securities and Exchange Commission (SEC).
“All offers in these notes will be offered by means of a private memorandum,” they state, noting that this announcement made by the company does not constitute a formal offer.
MicroStrategy states in the official statement that is planning to issue another USD 90 million in bonds senior to invest in bitcoin at the end of this initial round of sales , depending on market conditions, they say. If they achieve their goals, they could buy that $ 700 million worth of cryptocurrency, adding more funds to MicroStrategy’s reserve of more than 70,000 BTC.
Bitcoin se About USD 50,000. Time to Buy
Although the price of bitcoin (BTC) is currently approaching $ 50,000, according to CoinMarketCap, this surge that many in the ecosystem are enthusiastic about could not be attributed to this MicroStrategy announcement.
However, the decisions made by the investment firm have been influencing both users and Bitcoin enthusiasts as well as relevant corporations and institutions. Earlier this month, on February 3-4, 2021, MicroStrategy organized the “Bitcoin for Corporations” event, where various aspects of Bitcoin and its powers as a store of value were discussed.
While some traders or investors think that it is better to buy assets when they are at a low price, with the expectation of their growth, MicroStrategy follows a disciplined strategy, without bowing to the market. As we reported in CriptoNoticias, its directors think that it is still early to invest in BTC.
The company announced for the first time that it had bought BTC at an estimated price of $ 10,000, in August of last year, which would undoubtedly multiply five times its fiat-denominated earnings at this time.
To this enthusiasm from MicroStrategy and its CEO Michael Saylor for Bitcoin has been joined by other giants like Elon Musk’s Tesla, which bought more than $ 1.5 billion worth of BTC last week.