MicroStrategy Raised Millions of Dollars to Acquire Bitcoin

It took less than for MicroStrategy to raise $500 million in bonds. On Monday, the Virginia-based company said it completed a $500 million offering in secured notes due 2028. The company expected to raise $400 million, but MicroStrategy surpassed expectations. The company said net proceeds from the sale will be approximately $488 million. Bitcoin’s biggest corporate investor plans to spend millions of dollars it raised to acquire even more bitcoin.

The company has yet to disclose when it will acquire more bitcoin. As of Monday morning, MicroStrategy owns about 90,079 tokens, worth nearly $3.8 billion. Nevertheless, its namesake bitcoin fund, investment manager GrayScale owns 654,885 tokens worth more than $24 billion.

MicroStrategy’s decision shows institutional investors are still optimistic about the coin’s future as it pares back losses from a crash in May.

In a sign of massive interest from institutional investors, MicroStrategy reportedly received more than $1.5 billion in orders for the offering which was announced on Monday, while bitcoin prices were at a one-month low of $33,400.

Bitcoin, its price, and MicroStrategy

The price of bitcoin jumped on Monday morning after Elon Musk’s tweet. On Sunday, Musk tweeted that Tesla would resume bitcoin transactions once roughly half of all mining is done using clean energy. The company stopped investing in the token last month due to concerns over its carbon footprint. At the moment, Tesla is the second-biggest corporate investor of bitcoin.

Given its outsized cryptocurrency investment, the company’s stock tends to ride bitcoin’s incredible volatile price wave. In a filing last Monday, the company said it expects to incur an impairment loss of at least $284.5 million in the second quarter based on the fluctuations in the market price of bitcoin.

The company’s shares fell more than 50% since February when the world’s largest cryptocurrency declined due to Musk. Elon Musk said prices seemed “too high”.

Cryptocurrencies on Tuesday

After a volatile weekend, bitcoin exceeded $40,000 reaching its highest point in more than two weeks. On Tuesday, its price was up more than 3% trading at $40,293. Another major cryptocurrency ether also witnessed a small lift but remained well within recent ranges at $2,600, up 4%. Dogecoin gained 0.7% while other cryptocurrencies like litecoin were also trading with gains over the last 24 hours.