Bitcoin

MicroStrategy Sells $500 Million Notes To Buy Bitcoin

MicroStrategy has successfully sold off $500 million worth of notes (“the notes”) which it announced it was selling on June 8th in a press conference, to buy Bitcoin. The notes were sold to qualified institutional buyers in a private offering in reliance to Rule 144A under the Securities Act of 1933. They were all sold to persons outside of the United States in accordance with Regulation S under the Securities Act.
At the time of offering, MicroStrategy estimated that the net proceeds from the sale of the notes and related guarantees after deducting initial discounts and commissions and estimated offering expense payable MicroStrategy would be $488 million.
MicroStrategy Confirms Sale Of Notes
In a press release that came out earlier today, MicroStrategy states that the notes and guarantees were all sold to qualified institutional buyers under the Securities Act.
“The notes are fully and unconditionally guaranteed on a senior secured basis, jointly and severally, MicroStrategy Services Corporation, a wholly owned subsidiary of MicroStrategy, and may be similarly guaranteed certain subsidiaries of MicroStrategy that may be formed or acquired after the closing of the offering.”
There was massive interest in buying the notes offered the corporation as the company reportedly received more than $1.5 billion in orders for the notes worth $500 million.
Related Reading | MicroStrategy Receives Over $1.5B In Orders For $500M Notes To Fund Bitcoin Purchases
CEO Michael Saylor who has always been bullish on Bitcoin said the plan was to buy more Bitcoin to add to its portfolio which now sits at approximately 92,079 Bitcoins.
The press release also issued a notice;
“This press release shall not constitute an offer to sell or a solicitation of an offer to buy the notes or any other securities, nor shall there be any sale of the notes or the related guarantees in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful under the securities laws of any such state or jurisdiction.”
The company is yet to disclose when it will purchase more Bitcoin.
MicroStrategy Unveils A New Subsidiary
The corporation also announced a new subsidiary, MacroStrategy LLC, which now holds all of the bitcoins the company has purchased thus far. This is assumed to be a play to separate the investment portfolio from the core business of MicroStrategy, which is an enterprise business application software vendor.
Related Reading | Why MicroStrategy Decided To Pay Its Board Of Directors In Bitcoin
MicroStrategy is the largest independent publicly-traded analytics and business intelligence company. Its ticker symbol is MSTR and it is traded publicly on the NASDAQ.
The stock market has reacted positively to this news. Shares of MicroStrategy are up 80% as at the time of this writing. MicroStrategy’s market cap now sits at around $5.82 billion, a massive jump from $5.03 billion as at yesterday.
Source: BTCUSD on TradingView.com
Bitcoin Market Reaction To MicroStrategy
This news follows Paul Tudor Jones announcing that he wants to allocate 5% of his portfolio to Bitcoin. Giving Bitcoin the bump it needed to finally get over the $40k hump after news of Tesla resuming payments with Bitcoin pushed it closed. Bitcoin price is up 9% today and is currently a little over $40k.
While this is no means the bullish rally that investors have been hoping for but it shows that institutional investors are still optimistic about the future of the asset as it begins its climb back from its crash about a month ago.
MicroStrategy currently owns $3.7 billion worth of Bitcoin according to today’s prices, all of which were bought at an average of $24,000 per Bitcoin. This amount is higher than any other publicly-traded company in the world.
Chart from TradingView.com

bitcoin
Bitcoin (BTC) $ 37,715.10
ethereum
Ethereum (ETH) $ 2,051.03
tether
Tether (USDT) $ 0.999787
bnb
BNB (BNB) $ 227.72
xrp
XRP (XRP) $ 0.606148
solana
Solana (SOL) $ 59.25
usd-coin
USDC (USDC) $ 1.00
staked-ether
Lido Staked Ether (STETH) $ 2,048.48
cardano
Cardano (ADA) $ 0.375480
dogecoin
Dogecoin (DOGE) $ 0.083438
tron
TRON (TRX) $ 0.103480
the-open-network
Toncoin (TON) $ 2.40
chainlink
Chainlink (LINK) $ 14.40
avalanche-2
Avalanche (AVAX) $ 21.35
polkadot
Polkadot (DOT) $ 5.46
matic-network
Polygon (MATIC) $ 0.761723
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 37,741.11
dai
Dai (DAI) $ 1.00
litecoin
Litecoin (LTC) $ 69.41
shiba-inu
Shiba Inu (SHIB) $ 0.000008
uniswap
Uniswap (UNI) $ 5.94
bitcoin-cash
Bitcoin Cash (BCH) $ 221.58
leo-token
LEO Token (LEO) $ 3.99
okb
OKB (OKB) $ 56.27
stellar
Stellar (XLM) $ 0.118295
monero
Monero (XMR) $ 169.59
true-usd
TrueUSD (TUSD) $ 0.998848
kaspa
Kaspa (KAS) $ 0.128075
cosmos
Cosmos Hub (ATOM) $ 9.24
ethereum-classic
Ethereum Classic (ETC) $ 18.62
crypto-com-chain
Cronos (CRO) $ 0.088751
lido-dao
Lido DAO (LDO) $ 2.35
filecoin
Filecoin (FIL) $ 4.38
internet-computer
Internet Computer (ICP) $ 4.56
hedera-hashgraph
Hedera (HBAR) $ 0.060282
thorchain
THORChain (RUNE) $ 6.43
aptos
Aptos (APT) $ 6.98
near
NEAR Protocol (NEAR) $ 1.88
mantle
Mantle (MNT) $ 0.538560
binance-usd
BUSD (BUSD) $ 0.999951
bittensor
Bittensor (TAO) $ 286.73
immutable-x
Immutable (IMX) $ 1.28
vechain
VeChain (VET) $ 0.021342
injective-protocol
Injective (INJ) $ 18.44
optimism
Optimism (OP) $ 1.67
quant-network
Quant (QNT) $ 100.18
aave
Aave (AAVE) $ 98.21
maker
Maker (MKR) $ 1,526.46
the-graph
The Graph (GRT) $ 0.142937
render-token
Render (RNDR) $ 3.44