Analytical giant MicroStrategy is taking another confident step. The company plans to sell convertible bonds in the amount of $ 400 million to a private client, and its management is going to invest the funds received in Bitcoin.
Recall that this year MicroStrategy has already made a large purchase of coins through several transactions, which means that the company continues to adhere to the chosen course.
Recall that convertible bonds are debt securities that allow the holder to convert the value into cash, company shares, or a combination of both. Holders receive interest on bonds maturing in December 2025 twice a year. MicroStrategy will be able to repurchase the bonds in cash in December 2023.
Thus, the company will receive free funds that its management prefers to invest in Bitcoin.
It’s never too late to buy bitcoins
At the moment MicroStrategy already owns 40,824 BTC worth over $ 778 million. The last purchase of coins by the company took place on December 4, when 2,754 BTC were purchased for $ 50 million. Apparently, the management of the company still lacks cryptocurrency. Here is a quote from a press release on the bond sale quoted by Cointelegraph.
MicroStrategy intends to invest proceeds from the sale of bonds in bitcoins in accordance with its Treasury Policy before determining working capital requirements and other general corporate goals.
MicroStrategy is not the only financial giant actively investing in cryptocurrencies. The company Grayscale is also engaged in this, and taking into account the volume of coins, it has succeeded in cryptocurrency investments more than others. Grayscale ranks first in our ranking of enterprises that have managed to invest in blockchain assets, but has no plans to end there.
As we learned yesterday, over the past 24 hours, the company has acquired another 3637 bitcoins, and in a month its reserves have grown by 59 thousand coins. According to analysts, as a result, the amount of BTC on the Grayscale balance exceeds 550 thousand units.
An additional injection of $ 400 million into the crypto market will give MicroStrategy approximately 20,833 BTC more. Thanks to this, the total amount of digital assets on the company’s account will exceed 62 thousand BTC. MicroStrategy already owns a fairly impressive share of coins among institutional investors on Wall Street, and after realizing its own goals, its positions will become even stronger.
It seems that active investment in cryptocurrencies has led to a lack of free finance. At the very least, a quick dump of convertible bonds could mean that the firm desperately needs cash. Obviously, the company’s management wants to make it before BTC becomes too expensive.
Note that now the time for investing in cryptocurrencies seems to be more successful than it was, for example, a week ago. The blockchain asset market has dropped noticeably tonight, which means that the allocated dollar amount will bring MicroStrategy more bitcoins.
The rate of the first cryptocurrency is $ 18,202, which is 5.1 percent less than a day ago. Ethereum ETH dropped by 7.2 percent per day – its rate is $ 548. The market correction is especially noticeable in terms of total capitalization: in one day it dropped from $ 576 to the current $ 544 billion. And judging by the active growth of BTC in recent months, it may not end there.
We believe that such activity of financial giants may already be a little scary for cryptocurrency lovers. It is obvious that the management of the companies is not going to stop and are planning to increase their holdings of coins. And since the same MicroStrategy is not going to get rid of BTC for at least a hundred years, this is a serious reason to think.
Of course, there will always be free bitcoins for sale on the market, but given such attention from large companies, it would be rather strange for ordinary investors not to accumulate cryptocurrency. Nevertheless, the purchase of coins is now in trend – and on a global scale.