Under the leadership of CEO Michael Saylor, MicroStrategy, a NASDAQ-listed company, is already considered "AII In" Bitcoin.
Preliminary statistics from a financial reporter found that MicroStrategy's heavy bet on Bitcoin has exceeded 3.7 billion U.S. dollars, ranking first among all organizations that disclose relevant information. This has made it the largest bitcoin bull on the open market.
Sort out the history of MicroStrategy's purchase of Bitcoin.
MicroStrategy first disclosed the use of the company's own cash to purchase and hold bitcoins on August 11, 2020. Since then, it has made additional investments four times in a row, using USD 500 million to purchase 41,433 bitcoins.
Convertible bonds were issued on December 20, 2020, and February 24, 2021, respectively, raising $ 1.7 billion U.S. dollars and purchasing 48,868 Bitcoins. As of March 2021, MicroStrategy has used a total of US$2.2 billion to purchase 90,301 bitcoins.
After Bitcoin retreated sharply in May 2021 to below $40,000, MicroStrategy started buying, buying, and buying again.
On June 7, 2021, in a document filed with the U.S. Securities and Exchange Commission (SEC), it was disclosed that MicroStrategy announced that it would issue a total of 400 million in principal under the provisions of the Securities Act, subject to market and other factors. U.S. dollar senior notes maturing in 2028, the net proceeds from the sale of the notes will be used to buy more bitcoins.
The document also revealed the earnings of MicroStrategy's investment in Bitcoin. According to the volatility of Bitcoin prices in the second quarter of 2021, as of the report date, the company expects that in the three months ending June 30, 2021, Bitcoin-related loss was at least 284.5 million U.S. dollars.
Despite a loss of US$280 million, MicroStrategy plans to issue senior notes due in 2028, to which investors have enthusiastically subscribed. According to Bloomberg News, the source revealed that the subscription amount of the note had exceeded 1.6 billion U.S. dollars, and the subscribers include a large number of hedge funds.
On June 9, 2021, MicroStrategy raised the total amount of senior guaranteed notes due in 2028 to 500 million U.S. dollars, with an annual interest rate of 6.125%, underwritten by investment bank Jefferies Financial Group Inc...
On June 15, 2021, MicroStrategy announced the end of the issuance of senior notes due in 2028. The total principal of the notes issued this time is US$500 million, and the annual interest rate of the notes is 6.125%.
MicroStrategy said that after deducting initial purchaser discounts and commissions and expected issuance fees payable by MicroStrategy, the net proceeds from the sale of notes and related guarantees are approximately US$488 million, which will be used to continue buying bitcoin.
On the same day (June 15, 2021), MicroStrategy released a document stating that it intends to "increasing capital and expanding shares" to raise US$1 billion, again adding Bitcoin. In addition, MicroStrategy disclosed in a document filed with the U.S. Securities and Exchange Commission (SEC) that it intends to flexibly sell up to US$1 billion of Class A common shares within a period through a "market price" securities offering. The proceeds from the sale will be provided under the prospectus. The net proceeds of any Class A common stock are used for general corporate purposes, including the acquisition of Bitcoin.
Just as it takes time to test whether Michael Saylor is a valid Bitcoin believer, MicroStrategy's gamble on whether Bitcoin can succeed also takes time to test.