MicroStrategy Ups Bitcoin Bond Sale to $500 Million

Selling $400 million in corporate debt wasn't enough to meet investor demand.

2 min read

Jun 8, 2021

What's another $100 million between friends?

Enterprise software firm MicroStrategy has upped its corporate bond sale, first announced yesterday, from $400 million to $500 million. The publicly traded company plans to use the revenue to purchase Bitcoin atop the 92,079 BTC it already holds.

According to a report from Bloomberg, which cites unnamed sources, MicroStrategy upped the sale after receiving $1.6 billion in bond orders from institutional investors eager to buy up the corporation's debt in return for a yield of 6.125% in annual interest.

MicroStrategy's sale of senior secured notes will allow the firm, led by Bitcoin bull Michael Saylor, to buy more BTC after the price of the digital asset dipped below $35,000. Just last month Bitcoin hit a record price of $63,501.

While both numbers are above the average price MicroStrategy spent for its BTC, $24,450 per token, the declines this quarter have forced the company yesterday to take an impairment loss of $284.5 million. Thus, because Bitcoin's price dropped in late May, the company's official value has also dropped.

While investors are apparently interested in the bonds, MicroStrategy's stock price closed down 2% today. Its existing bonds—$900 million in convertible notes it sold in February for over $100, also to purchase Bitcoin—fell slightly, to $65.

Get crypto news straight to your inbox--

sign up for the Decrypt Daily below. (It’s free).

Get Email!

Bitcoin ETFs Take in $1 Billion as BTC Price Nears $100,000

Bitcoin exchange-traded funds (ETFs) recorded near-record inflows yesterday of over $1 billion, as Bitcoin's price neared the $100,000 milestone for the first time amid volatile trading conditions. The huge inflows come after options trading on BlackRock’s spot Bitcoin ETF kicked off on November 19, following the Securities and Exchange Commission's (SEC) approval of the listing of options for spot Bitcoin ETFs last month. Blackrock’s iShares Bitcoin Trust (IBIT) attracted the largest inflows o...

Apple Admits to Security Vulnerability That Leaves Crypto Users Exposed—Here's What You Should Do

Apple confirmed Monday its devices were left vulnerable to an exploit that allowed for remote malicious code execution through web-based JavaScript, opening up an attack vector that could have part unsuspecting victims from their crypto. According to a recent Apple security disclosure, users must use the latest versions of its JavaScriptCore and WebKit software to patch the vulnerability. The bug, discovered by researchers at Google's threat analysis group, allows for “processing maliciously cr...

Solana Hits All-Time High Price Two Years After FTX Nearly Sent It to Zero

After three long years, Solana (SOL) has finally broken its all-time high price record, setting a new milestone above $260 on Thursday. Solana rose above the previous $260 record mark early Thursday afternoon, per data from Coinbase, continuing the asset's recent hot streak following the U.S. presidential election win of crypto candidate Donald Trump earlier this month. The jump also came following word that Gary Gensler, the SEC Chairman who led the regulator's crypto industry crackdown, will r...

News

Courses

Deep Dives

Coins

Videos