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Unafraid of negative reviews! MicroStrategy raises company debt to $500 million, preparing to buy the dip in Bitcoin

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Unafraid of negative reviews! MicroStrategy raises company debt to $500 million, preparing to buy the dip in Bitcoin

(This article is authorized to be reprinted from Vision News Network. For the original article, please refer to the source.)

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(This article is authorized reprint from Horizon News, original article here)

Publicly traded business software company MicroStrategy has raised debt for the third time in a year to purchase Bitcoin. MicroStrategy was initially reported to be issuing $400 million in bonds on Monday, but according to Bloomberg, this amount has now been increased to $500 million.

After news broke on Monday that MicroStrategy was planning to issue bonds to raise $400 million to buy more Bitcoin, criticism arose as founder Michael Saylor was seen as overly focused on Bitcoin investment, including making it a formal corporate strategy. MicroStrategy's stock opened at $458 yesterday, dropped all the way to $427 at the lowest point, but after news that the company was increasing its bond offering to $500 million, the stock price climbed back up, closing at $459, down slightly by 2%.

MicroStrategy currently holds 92,079 bitcoins. Bloomberg noted that MicroStrategy increased its sales efforts after receiving $1.6 billion in bond orders from investors, as there was significant interest in MicroStrategy's bonds due to a 6.125% annual interest rate return.

MicroStrategy had originally planned to sell $400 million in corporate bonds to raise funds, preparing to purchase if Bitcoin prices fell below $35,000.

With the current average price of $24,450 per bitcoin held by MicroStrategy, profits have been eroded due to the drop in Bitcoin prices, leading to a decrease in MicroStrategy's market value.