Share this article
MicroStrategy has completed a $489 million Bitcoin purchase from the proceeds of the sale of $500 in senior debt notes last week.
MicroStrategy and the Big Bitcoin Bet
The American intelligence firm added 13,000 BTC to its treasury from $489 million (after expenses) raised from corporate bonds sale to accredited investors. The average purchase price was $37,617.
The company’s most recent purchase is down 13.2% in value due to fear of a crypto trading ban in China.
MicroStrategy is the world’s largest Bitcoin holder among publicly traded companies. It holds $105,000 BTC worth $3.4 billion at current prices. The total aggregate of MSTR’s purchase is $26,080.
The MSTR stock is now a pseudo-Bitcoin ETF; more than 60% of its Bitcoin purchases are from the $2.1 trillion raised from stock convertible and debt notes. The MicroStrategy share price now largely relies on Bitcoin’s performance.
We may not have a Bitcoin ETF, but Microstrategy might as well be one pretty soon https://t.co/keJORJmFS9
— Travis Hole (@travscrub10) June 14, 2021
Last week, the firm also announced a $1 billion stock sale to use the money in operations and purchase Bitcoins, on top of the $500 million debt purchase completed today.
This morning, famed macro-trader Dr. Michel J. Burry ridiculed MicroStrategy’s Bitcoin buys and the bullishness in a now-deleted tweet, appearing to mock investors for taking their cues from the company.
Burry tweeted the MicroStrategy stock ticker “MSTR” along with a YouTube link to the Metallica song, “Master of Puppets,” perhaps implying that MicroStrategy was attempting to manipulate the market by sending buy signals with its purchases.
Burry, who is famous for successfully shorting the 2007-2008 housing bubble, recently alarmed investors by tweeting about the upcoming “bubble of all bubbles” in all asset classes, including Bitcoin.
Bitcoin was last trading at $32,500 on Coinbase.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
$5.3 Billion Trust Fund to Allocate 10% of Assets in Bitcoin
Global investment firm Guggenheim Trust Fund filed an SEC application last Friday to purchase Grayscale’s Bitcoin product, GBTC. The fund can invest north of $500 million in GBTC. Bitcoin’s Macro…
MicroStrategy Plans $1B Stock Offering to Buy Bitcoin
MicroStrategy has filed an application for a $1 billion securities offering of its class A common stock, NASDAQ: MSTR. The company will use the money for “general corporate purpose, including…
MicroStrategy Closes $500M Offering for Bitcoin Purchase
Institutional investors quickly bought up $500 million worth of senior debt notes issued by MicroStrategy. The firm will use the nine-figure sum to buy Bitcoin. MicroStrategy Still Bullish on Bitcoin …
What is Kusama? How Polkadot’s playground accommodates blockchain de…
Kusama is relatively young and was founded in 2019 by Dr. Gavin Wood, who also founded the Web3 Foundation and co-founded Ethereum. The team behind Kusama is essentially the same…