MicroStrategy Receives $ 1.6 Billion Bids From Investors To Buy Bitcoin

- Advertisement -

MicroStrategy has raised its fundraising plan by $ 100 million to $ 500 million in light of the high oversubscription of its most recent bond offering, Bloomberg reported. The company intends to use funding to buy bitcoin.

MicroStrategy has received applications for $ 1.6 billion from interested investors, including a large number of hedge funds, the source said. Prior to that, in a similar way, in two rounds, it raised over $ 1 billion. The $ 400 million initially offered at the time of the plan’s disclosure on Monday was no longer in line with demand, Bloomberg adds. The source also said that the company is offering bonds with yields ranging from 6.125% to 6.25% – less than during earlier discussions, when it came to 6.25-6.5%.

- Advertisement -

MicroStrategy attracts new funding amid the ongoing rollback of bitcoin from the highs of about $ 65,000. At the time of publication, the first cryptocurrency is trading at $ 33.8 thousand. A number of market participants feared that the fall in bitcoin would make it less attractive for large investors and MicroStrategy would not be able to close the last round at the desired level, but the Bloomberg publication suggests that this is not the case. With the latest investment, the number of bitcoins in MicroStrategy’s reserves is expected to exceed 100,000.

In reporting to the US Securities and Exchange Commission on Monday, MicroStrategy wrote that its quarterly loss due to the decline in bitcoin will be about $ 284.5 million, which exceeds the company’s total earnings since 2011, excluding investments in cryptocurrency.

- Advertisement -


Please enter your comment!
Please enter your name here

Hot Topics

Related Articles