MicroStrategy once again increases its investment in Bitcoin and plans to issue $400 million in bonds

In addition to Grayscale, there is no doubt that MicroStrategy is one of the largest Bitcoin buyers on Wall Street in recent times.

According to the latest news on December 7, Nasdaq-listed MicroStrategy announced that it will publicly sell $400 million of convertible preferred bonds due in 2025 to qualified institutional investors. How to use the $400 million in cash from the issuance? MicroStrategy said it intends to invest the net proceeds from the sale of bonds in Bitcoin after deducting working capital needs and other general corporate purposes in accordance with its reserve policy.

According to MicroStrategy, the bonds will be MicroStrategy's unsecured senior obligations, with interest payable semi-annually on June 15 and December 15 of each year, commencing on June 15, 2021. The $400 million bonds will mature on December 15, 2025, unless repurchased earlier. Redemption or conversion in accordance with their terms. According to MicroStrategy, the bonds will be converted into cash, MicroStrategy's Class A common stock, or a combination of cash and MicroStrategy's Class A common stock. Under certain conditions, MicroStrategy will redeem all or part of the bonds for cash on or after December 20, 2023.

Since August 2020, MicroStrategy has increased its Bitcoin holdings several times. The timeline of MicroStrategy's purchase of Bitcoin is as follows:

In August 2020, MicroStrategy spent $250 million to buy 21,454 bitcoins.

On September 14, 2020, MicroStrategy spent another US$175 million to purchase 16,796 bitcoins.

On December 3, 2020, MicroStrategy CEO Michael Saylor tweeted that the company purchased approximately 2,574 bitcoins for US$50 million on December 3, with an average price of approximately US$19,427 per bitcoin.

MicroStrategy currently holds approximately 40,824 bitcoins.

Why did MicroStrategy buy Bitcoin so generously? This is inseparable from its CEO Michael Saylor, who explained that it was to hedge against the negative impact of monetary inflation.

There is no doubt that Michael Saylor is the most active advocate in the Bitcoin circle recently. In addition to supporting MicroStrategy, which he manages, to buy Bitcoin vigorously, he also buys a large amount of Bitcoin as an individual. Michael Saylor said on Twitter on October 28 that he personally holds 17,732 BTC, with an average purchase price of about US$9,882. In addition to investing in Bitcoin, Michael Saylor also independently runs a Bitcoin full node.

In addition to MicroStrategy, Grayscale's sister company Genesis CEO Morrow recently predicted that in 2021, 250 listed companies will follow MicroStrategy's footsteps and join the pace of purchasing Bitcoin.

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