The first company to convert part of its capital to bitcoin, MicroStrategy announced on June 7 its intention to raise US$ 400 million by selling bonds and using the value to acquire more bitcoin.
In a press release, the software company said it will issue senior bonds, a kind of debt offering, and secure the notes issued with the bitcoin that will be purchased. MicroStrategy already has more than 92,000 bitcoin, obtained by exchanging the company’s US$ 800 million cash and also by issuing future maturing debt.
The company wants to protect its capital
During the Bitcoin 2021 conference, held the weekend before the bond offering announcement, the company’s CEO, Michael Saylor, stressed that he was not concerned about the recent bitcoin price fall and said that he believes in the cryptocurrency long-term appreciation.
The executive’s motivation is to protect MicroStrategy’s capital from inflation, given the increasing issuance of money by central banks worldwide. The bitcoin the company owns was purchased for about US$ 24,000 on average. Today, the cryptocurrency’s price is around $36,000.
Although the intention is to raise US$ 400 billion, the amount will depend on the market behavior. At today’s rate, if the company obtains all the capital, it would be possible to buy 11,100 bitcoin, which would make MicroStrategy the first company to have more than 100,000 bitcoin in cash.