Michael Saylor’s MicroStrategy is heading to the lending markets to finance another Bitcoin buying spree.
The firm says that it will borrow approximately $500 million in the form of senior secured notes. All proceeds will go towards buying more Bitcoin at a time when the flagship crypto asset is nearly 50% down from its all-time highs.
[adinserter block="1"]“MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional Bitcoins.”
The business analytics software firm adds that it will borrow from “qualified institutional buyers” as well as from “persons outside of the United States”.
MicroStrategy’s original announcement stated an aim to acquire $400 million in notes but later boosted it by another $100 million.
Currently, the Saylor-led firm holds 92,079 Bitcoin which were acquired at an average price of around $24,450. With BTC trading at $33,842 at time of writing, $500 million would translate to about 14,774 Bitcoin.
During the Bitcoin 2021 Miami conference earlier this month, Saylor argued that Bitcoin’s return on investment makes borrowing in order to invest in the flagship cryptocurrency feasible.
“[MicroStrategy] realized that if that asset is going to go up by more than 10% a year and you can borrow money at 5% or 4%, or 3%, or 2%, then you should pretty much borrow as much money as you can and flip it into the asset.”
The MicroStrategy CEO also disclosed that the tech firm’s Bitcoin investments improved the company’s financial performance significantly.
“We say Bitcoin is hope. Bitcoin fixes everything…that certainly was the case with our stock…. It imbued life into the company… Morale was dramatically boosted. We just had the best first quarter we’ve had in a decade.”
Follow us on X, Facebook and Telegram
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Surf The Daily Hodl Mix
[adinserter block="1"]
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Tithi Luadthong
