MicroStrategy is a software-based company providing assistance to its clients in relation with the blockchain technology. MicroStrategy has been among the first Bitcoin buyers since the cryptocurrency got attention and was being bought off actively by the traders. But there is one strange aspect: MicroStrategy has never liquidated their Bitcoin stash, not even in the slightest. Many times before, MicroStrategy bought Bitcoin in bulk, and it was almost every time when the market was in plummet and Bitcoin had taken a punch price-wise. MicroStrategy has about $92k+ Bitcoins in its possession as we speak.
During the last market crash, MicroStrategy was the biggest buyer as the company raised almost $500 million through debt by giving out the possession of the senior notes to the interested parties. The annual interest rate was decided at 6.125%, which was a little too much, but MicroStrategy agreed to it and bought Bitcoin with funds worth $500 million. This $500 million bond offering by MicroStrategy has been a success, and now it is ready to raise $1 billion by initiating its very own Bitcoin offering and raising funds through equity.
MicroStrategy is to Offer their Own Bitcoin Stocks Making the Company a Pioneer in this Frontier
The company’s representatives have even come forward to state their take on this thing by saying that MicroStrategy will be using the net proceeds procured by selling any class A common stock. Every stock is issued under the very prospectus for general corporate purposes. If you thought that this might leave the acquisition of Bitcoin completely out, then you will be pleased to know that it doesn’t, and the acquisition of Bitcoin is included. MicroStrategy at present has a market cap of about $6 billion with an annual profit of $400 million. The $92k+ Bitcoins that the company currently owns prior to the new $1.5 billion stock offering are already worth $3.6 billion in the current market.
It isn’t speculative to say that MicroStrategy is building a Bitcoin treasury for themselves, which already exceeds the total money input spent on building it and will offer huge sums to the company in the near future.
