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Michael Saylor’s MicroStrategy is heading into the lending markets to fund another bitcoin buying frenzy.
The company announced that it would borrow approximately $ 500 million in the form of senior secured notes. All profits will be used to buy more Bitcoin at a time when the flagship crypto asset is nearly 50% below its all-time highs.
MicroStrategy intends to use the net proceeds from ticket sales to acquire additional Bitcoins.
The business analysis software company adds that it will borrow from “qualified institutional buyers” as well as “persons outside the United States.”
MicroStrategy’s initial announcement indicated a goal of acquiring $ 400 million in tickets, but then increased it by an additional $ 100 million.
Currently, the company run by Saylor owns 92,079 Bitcoins which were acquired at an average price of around $ 24,450. With BTC trading at $ 33,842 at the time of writing, $ 500 million would translate to roughly 14,774 Bitcoin.
At the Bitcoin 2021 conference in Miami earlier this month, Saylor argued that the ROI of Bitcoins makes borrowing possible in order to invest in the flagship cryptocurrency.
“[MicroStrategy] realized that if this asset is going to grow by more than 10% per year and you can borrow money at 5% or 4%, or 3% or 2%, then you should borrow as much money as possible and return it the in the asset.
MicroStrategy’s CEO also revealed that the tech company’s Bitcoin investments have dramatically improved the company’s financial performance.
“We say Bitcoin is hope. Bitcoin repairs everything that was certainly the case with our stock. It brought the business to life. Morale has been greatly improved. We just had the best first shift we’ve had in a decade.
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Featured Image: Shutterstock / Tithi Luadthong
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