MicroStrategy is a business intelligence company based in Virginia. In the Q1 of 2021, the company disclosed a profit of $122.9 million, showing a 10.3% increase. This number is significant considering that most of the organizations were going through the destructive wave of COVID-19 depreciation during that time. Michael Saylor, CEO and founder of the firm attributed the Bitcoin adoption of the enterprise with successful commercial reports.
Saylor has been a Bitcoin maximalist for many years and is counted among the most vocal advocates for institutional adoption of the beacon coin. He first invested in the flagship cryptocurrency in August 2020, buying $250 million worth of Bitcoin. Since that time, the company has made it a policy to add Bitcoin to its reserves regularly as a hedge against the devaluation of the dollar. The board members of the company are also paid in Bitcoin. Last week, MicroStrategy started to sell debt for acquiring more Bitcoin.
MicroStrategy Managed to Raise $1.5 billion Orders of Offering for Bitcoin Bonds
MicroStrategy has completed minting the senior secure notes worth $500 million on Monday as per the media briefing. The company management informed that after the deduction of commissions and other cost accounts, the hefty sum of $488 million could be used to purchase more Bitcoins. At present, MS is the largest publicly trading company in terms of Bitcoin reserves. According to careful estimates, the company holds about 92,079 tokens.
The bonds are set to offer annual interest of 6.0%-6.5% and due in 2028. The company representation has declared that bonds have managed to attract $1.5 billion offering orders. This massive accumulation of funds is taken as a sign of increasing institutional interest towards the flagship cryptocurrency. It should be noted that the order offerings were noticed last week up until Bitcoin was trending at a monthly low price of $33,000.
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The MicroStrategy shares have done well as the company keeps adding Bitcoin to the balance sheet and increase its massive Bitcoin reserves continuously. After the announcement of Bitcoin Bonds, the company shares went up by 15%. This marks a YTD rise of about 40% for the same. However, in a financial filing last week, the company estimate an impairment loss of $284.5 for the second quarter.
At press time, Bitcoin prices have recovered from pares since last weeks and trading for $40K. It is believed that the decline in Bitcoin price was driven due to negative comments of Tesla CEO Elon Musk. The organization is the second-largest accumulator of Bitcoin after MicroStrategy. Musk went on to liquidate about 10% of Bitcoin reserves in the last quarter and retracted the decision of Tesla accepting Bitcoin as payment for its products.