MicroStrategy wants to buy Bitcoin again

MicroStrategy wants to buy Bitcoin again. After successfully raising US$500 million, the proceeds from the sale of debt securities, yesterday MicroStrategy announced its intention to sell its shares, as well as to buy Bitcoin. 

img by ConseilsCrypto

The amount is unmitigated, reaching US $ 1 billion equivalent to Rp. 14.2 trillion.

Triv Boss: Institutions Trust Bitcoin More

Responding to MicroStrategy's move, Triv.co.id CEO Gabriel Rey assessed that it actually reflects institutional trust in the crypto world that still exists and does not fade.

"This is in line with on-chain metrics which show that selling pressure has continued to decrease since the US35,000 per BTC figure. And it should still be remembered that this year there will be a Bitcoin ETF decision which if approved will bring a very significant price increase to Bitcoin,” said Rey.

He also considered that “Bitcoin worth” investment through MicroStrategy is an alternative to Grayscale Bitcoin Trust (GBTC).

"GBTC charges a management fee of 2 percent, while through MicroStrategy, 'exposure' to the value of BTC is free of charge," he concluded.

Owe US$500 Million

Yesterday the US public company announced that it had successfully raised US$500 million. The proceeds from the sale of bonds, aka corporate bonds, will be used to buy Bitcoin worth US$488 million (Rp6.9 trillion).

"MicroStrategy today announced the closing of its previously announced bond offering maturing in 2028. The value of the bonds sold reached US$500 million with an annual interest rate of 6.125 percent," according to the company's official statement, Monday (14/6/2021).

Less than 24 hours, they published a new announcement, that the company plans to sell shares worth US$1 billion, also to buy additional Bitcoins.

“From time to time, we may issue and sell shares of our class A common stock which has an average sales yield of up to US$1,000,000,000… We intend to use the net proceeds from this offering for general corporate purposes, including buying Bitcoin,” wrote company in its official report to the United States Securities and Exchange Commission (SEC).

MicroStrategy Chief Executive Officer (CEO) Michael Saylor has been known to be a strong supporter of Bitcoin since mid-2020.

It bought Bitcoin many times and made it an asset on their balance sheet, including suggesting Tesla buy the number one crypto asset.

MicroStrategy (MSTR) shares fell about 1 percent after the close of the US stock market. However, as observed this evening, the MSTR price rose by 15.8 percent, in the range of US$598.49. MSTR has jumped about 400 percent in the last year.

As of June 4, 2021, MicroStrategy already has 92,079 BTC, equivalent to IDR 52.4 trillion at current prices. MicroStrategy estimates its average purchase value to be US$24,450 per BTC.

Bitcoin Getting Bullish

Although it had fallen by more than 40 percent from its record high, the price of Bitcoin is expected to continue to strengthen to reach US $ 100 thousand per BTC.

The forecast is at least based on a study by Mike McGlone of Bloomberg Intelligence last week.

McGlone did not deny that there were corrections before entering the US$100 thousand region this year.

For him, the previous correction was very reasonable, because some parties switched to buying gold, as a result of which a number of central banks bought the precious metal again.

However, McGlone ensures that the appreciation of Bitcoin does not fade, because many companies have realized the importance of the asset as a store-of-value.