Earlier this week, MicroStrategy (MSTRG), Michael Saylor’s company, announced it would make $500 million available to purchase Bitcoin (BTC). Yesterday, the company went one step further with a new plan to free up a total of $786 million to purchase Bitcoin.
MicroStrategy’s confidence in Bitcoin is high
To generate this liquidity, the company will issue convertible bonds. Whether MicroStrategy can actually release the full $786 million depends on investors choosing to exercise the options on the bonds.
If MicroStrategy again invests hundreds of millions in Bitcoin, it will further strengthen their position as the largest institutional Bitcoin owner. Currently, the company owns a whopping 214,400 BTC, with an estimated value of around $14.3 billion.
Considering the total supply of 21 million Bitcoin, MicroStrategy already owns more than 1 percent of all Bitcoin ever available.
Michael Saylor and company have unparalleled confidence in Bitcoin, and this new plan to buy even more Bitcoin underlines that. To purchase the nearly $800 million worth of BTC, the company will take on debt. The bonds are issued as debt paper with an annual interest of 2.25 percent.
However, this won’t keep Michael Saylor awake. Few people on earth have more confidence in Bitcoin than he does. So far, his obsession with Bitcoin has paid off well. MicroStrategy stock is also popular because it offers investors derivative-like exposure to Bitcoin.
Not long ago, during the depths of the crypto winter, MSTR stock was worth about $150. Earlier this year, when Bitcoin hit a new all-time high in March, the stock traded for as much as $2,000.
Although Michael Saylor has sometimes been called crazy in the past, there is a good chance that he will go down in the Bitcoin history books as a pioneer and genius. The future will tell. It is still unknown when MicroStrategy will carry out the planned Bitcoin purchase.
Source: https://newsbit.nl/microstrategy-verhoogt-inzet-786-miljoen-extra-voor-bitcoin-aankoop/
