Cryptocurrency bull MicroStrategy issued $400 million in junk bonds to continue buying cryptocurrencies. The CEO once said, "I will never sell it even if I die! Damn Musk!"

Original title: "I won't sell it even if I die! Damn Musk! Cryptocurrency bull MicroStrategy issues $400 million in junk bonds to continue buying cryptocurrencies"

As Musk's attitude towards Bitcoin fluctuates, MicroStrategy, which previously bought a large amount of Bitcoin, is preparing to issue bonds to raise $400 million to buy Bitcoin and other digital currencies. After the news was announced, Bitcoin rose in the short term, but the upward trend failed to continue.

According to the latest statement, MicroStrategy said that it will raise $400 million through private placements to purchase Bitcoin and other digital assets, depending on market conditions. The bonds are senior secured notes for qualified institutional investors and will mature in 2028. According to the media, MicroStrategy is currently negotiating with investors to issue bonds at a junk bond yield of 6.25%-6.5%. This is the first time in history that junk bonds have been issued to purchase Bitcoin. On December 7 last year, MicroStrategy also announced the issuance of $400 million in convertible bonds and invested the proceeds in Bitcoin.

In addition, MicroStrategy also stated in the statement that the 92,079 bitcoins currently held will be transferred to the newly established subsidiary MacroStrategy. According to statistics, the average purchase price of these bitcoins is US$24,450 per coin, and the floating profit is close to 50% based on the current market price.

However, it should be noted that MicroStrategy stated in a regulatory filing disclosed to the SEC on June 7 that due to currency price fluctuations in the second quarter, it is expected to record at least US$284.5 million in Bitcoin-related impairment losses in the three months ending June 30.

When the financial blog ZeroHedge posted the full text of MicroStrategy's statement, it also quoted the views of the company's CEO Michael Saylor. He believes that before Bitcoin, traditional investments have lost all their appeal and people can never own anything in real life. In addition, he also said that Bitcoin is the safest, most reliable and most certain thing in the entire economic system.

MicroStrategy's plan to raise funds to buy coins comes at a time when Musk's relationship with Bitcoin is cooling again. Musk sent two mysterious tweets on June 4, including "#Bitcoin", a heartbroken emoji and a photo of a couple discussing a breakup. Some market opinions interpreted this as the billionaire's breakup with Bitcoin, and Bitcoin fell nearly 6% in 9 hours due to the news, from above $39,000 to around $36,000. And the signs of Musk's breakup with Bitcoin also "broken the hearts" of Bitcoin fans. At the Bitcoin 2021 conference held on Friday, Max Keiser, host of the financial news program Keiser Report, interviewed Michael Saylor before Saylor repeated several times in front of the audience with swear words, "We're not selling" and "Damn Musk". Some participants also expressed their disappointment with Musk on social media.

However, according to the Forbes website, Musk seems to be paying more attention to Ethereum as his relationship with Bitcoin cools. He commented on Ethereum co-founder Vitalik Buterin's interview with researcher and audio blogger Lex Fridman on Twitter, saying that he basically agreed with Vitalik's views. At that time, Vitalik pointed out in the interview that if Dogecoin was connected to Ethereum in some way, people could trade Dogecoin at a speed of thousands of transactions per second, which would be amazing.

After the news of MicroStrategy issuing bonds to buy coins came out, Bitcoin was stimulated to rise slightly in the morning of the US time period, but the upward trend failed to continue, and then turned around and fell to around the US$36,000 mark.

At the end of trading in New York on Monday (June 7), the main contract of CME Bitcoin futures BTC was quoted at $34,495, down 6.66% from the end of trading in New York last Friday, and traded in the range of $37,015-34,000. The main contract of CME Ethereum futures DCR was quoted at $2,662.00, down 2.54% from last Friday, and traded in the range of $2,867.00-2,641.50. The 24-hour and 7-day declines of Ethereum were smaller than those of Bitcoin. At 5:00 a.m. on Tuesday morning Beijing time, Bitcoin fell below $34,000, and the short-term lowest reached $33,563, the lowest since May 30, with a 24-hour decline of 5.8%.