MicroStrategy, the software giant and one of the leading Bitcoin proponent institutions has announced a Proposed Private offering of $600 million of Convertible Senior Notes, which the company intends to use to buy more bitcoin. Microstrategy has already bought nearly $1.6 billion in bitcoin by converting a portion of their treasury cash.
The official press briefing read,
“MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoins.”
— Michael Saylor (@michael_saylor) February 16, 2021
Before its current $600 million convertible senior note offering, the software giants have done a similar offering of nearly $650 million posts which Citi bank downgraded its status. However, the downgrade did not really impact its share price, in fact, the share price has jumped by over 150% since the CITI downgrade.
MicroStrategy: The Biggest Bitcoin Institutional Buyer
MicroStrategy started buying Bitcoin back in August 2020 when the top cryptocurrency was trading just above $10,000, and since then the software giants have made several purchases to take their total Bitcoin investment to over $2 billion (including the current $600 million). The $1.57 billion purchase has already grown by over a billion within a year.
MicroStrategy would be known as the pioneer of institutional Bitcoin entry, not because they are the biggest bitcoin buyers among institutions at this point, but more importantly because they have worked tirelessly to educate other institutions and CEOs about Bitcoin’s importance as a store of value and a treasury reserve asset.
Many believe Microstrategy also played a part in Tesla’s $1.5 Billion bitcoin purchase based on MicroStrategy’s early conversation with Elon Musk about transacting large value of money instantly using Bitcoin.
The recent announcement of another $600 million to be raised in convertible senior notes and then used for buying more bitcoin would put MicroStrategy only behind Grayscale in terms of total Bitcoin under management, as the asset management firm currently holds nearly $3 billion in Bitcoin. The price of Bitcoin also hit $50,000 for a brief period of time to register a new ATH.