As if MicroStrategy did not already own a ton of bitcoin, the software firm with stock shares trading for nearly $500 at the time of writing has announced it is looking to sell approximately $400 million worth of company debt so it can purchase more BTC units.
MicroStrategy Is Looking to Buy More BTC
At press time, the company owns more than $2 billion in bitcoin, making it the biggest institutional bitcoin investor in the world. In second place is Tesla, which purchased roughly $1.5 billion worth of BTC last February. However, in many ways MicroStrategy has been the biggest marketer for the world’s number one digital currency by market cap.
Things began in August of last year – approximately ten months ago – when the company’s CEO Michael Saylor announced that the firm would be purchasing roughly $250 million worth of the asset. This was the first time in bitcoin’s short, 12-year history that a major institution was pledging support for bitcoin. In addition, it was the first time that an institution had bought so much of it.
From there, the currency took a nasty fall and dropped from around $12,000 per unit to roughly $10,000. For many other companies, they likely would have sold and cut their losses short, but MicroStrategy used the opportunity to purchase more bitcoin and add more than $100 million worth of bitcoin to its already giant stash. Thus, the company brought its overall BTC portfolio beyond the $400 mark. Since that day, MicroStrategy has engaged in regular purchases and seen its earnings grow beyond the $2 billion point, making this one of the biggest bitcoin success stories ever.
As a means of raising the money to purchase additional units, MicroStrategy announced in a statement last Monday that it was offering “senior secure notes” that qualified, institutional players would be able to purchase in the coming days. The debt will primarily be made available through a firm known as Jefferies Financial Group Inc.
Aside from just buying bitcoin and growing its balance sheet, MicroStrategy has taken a hard stance in trying to make bitcoin more accessible to others. Michael Saylor, for example, hosted a summit last February that sought to teach similar enterprises how they could begin investing in bitcoin and adding it to their own corporate stashes.
Making Miner Smarter and Greener
In addition, Saylor has recently joined forces with Elon Musk – the South African entrepreneur behind ventures like Tesla – to form the Bitcoin Mining Council. The purchase of the Council is to make data regarding energy use amongst the largest bitcoin mining corporations more transparent, as figures like Musk have expressed deep concerns in the past about the environmental impacts crypto extraction can allegedly cause.
Musk has stated he wants to learn more about the green energy uses these companies are engaged in so that bitcoin use can continue without threatening Earth’s atmosphere.