{"id":270179,"date":"2021-06-09T15:18:53","date_gmt":"2021-06-09T12:18:53","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/microstrategy-nets-1-6-billion-in-junk-bond-offering-to-buy-bitcoin\/"},"modified":"2021-06-09T15:18:53","modified_gmt":"2021-06-09T12:18:53","slug":"microstrategy-nets-1-6-billion-in-junk-bond-offering-to-buy-bitcoin","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/microstrategy-nets-1-6-billion-in-junk-bond-offering-to-buy-bitcoin\/","title":{"rendered":"# MicroStrategy nets $1.6 billion in junk bond offering to buy Bitcoin"},"content":{"rendered":"

“# MicroStrategy nets $1.6 billion in junk bond offering to buy Bitcoin <\/strong>”
\n<\/p>\n

Software firm MicroStrategy has raised $1.6 billion in a junk bond offering \u2014 four times the\u00a0initially sought amount.<\/p>\n

Earlier this week, the company\u00a0announced it would issue $400 million worth of junk bonds in a private offering, with a view to using the proceeds to purchase Bitcoin (BTC).\u00a0<\/p>\n

Junk bonds are debt offerings by companies without investment-grade credit ratings and typically offer investors higher returns while carrying higher risk. Returns between 6.125% and 6.25% have been floated for the bonds, eclipsing the returns offered by treasury bonds.<\/p>\n

\u201cThe notes will be fully and unconditionally guaranteed on a senior secured basis, jointly and severally, by MicroStrategy Services Corporation, a wholly owned subsidiary of MicroStrategy, and certain subsidiaries of MicroStrategy that may be formed or acquired after the closing of the offering,\u201d stated MicroStrategy\u2019s announcement.<\/p>\n

One day later, the firm announced<\/a> it would increase its bond offering to $500 million, after which it was inundated with $1.6 billion worth of orders.<\/p>\n

MicroStrategy currently holds the most Bitcoin<\/a> on its balance sheet out of all publicly traded companies, amounting to a dollar valuation of around $3.2 billion \u2014 more than twice the value of Bitcoin held by Tesla ($1.4 billion).<\/p>\n

MicroStrategy\u2019s stock price soared throughout much of 2020 and 2021 in line with the rising price of Bitcoin. But holding Bitcoin on its balance sheet wasn\u2019t enough to stop MicroStrategy\u2019s stock slide, which eventually came when the cryptocurrency market dipped. Since Bitcoin peaked in early April, the MicroStrategy share price has sunk by 45%.<\/p>\n

MicroStrategy also revealed the formation of a new subsidiary to hold its existing 92,079 Bitcoins, dubbed MacroStrategy LLC. <\/p>\n

Reaction to the news<\/a> on social media<\/a> was typically varied. Bitcoin supporters celebrated the news, noting the massive excess in demand for MicroStrategy\u2019s bonds.<\/p>\n

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MicroStrategy proposed $400 Million in bonds to buy more #bitcoin<\/a> and they got $1.6 Billion of interest.<\/p>\n

They got 4x more in demand than what they offered.<\/p>\n

\u2014 Documenting Bitcoin (@DocumentingBTC) June 8, 2021<\/a><\/p><\/blockquote>\n