Bitcoin’s biggest public holder gets $500m to buy more BTC; now looks to sell $1B in shares to buy further

MicroStrategy said its existing bitcoins are being held by a newly formed subsidiary MacroStrategy LLC. (Representative image)

The world’s biggest public Bitcoin holder MicroStrategy has raised $500 million in bond sale — $100 million more than what it had expected — to buy more Bitcoins. The company on Monday said it closed a $500 million offering of senior secured notes due 2028 while it estimates the net proceeds from the sale to be around $488 million, after deducting commissions and other expenses. “MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoin,” the company said in a statement, underscoring the institutional interest in the world’s largest cryptocurrency despite recent price correction.

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“The round was oversubscribed to a sum of $1.5 billion. This shows a lot of interest among accredited investors, and we could possibly see more fundraise by MicroStrategy in near future to acquire more Bitcoins. 34 publicly listed companies collectively own 186,421 Bitcoins worth $7 Billion, and the institutional adoption will increase more in near future. There is a high possibility that we could possibly see Apple and Facebook announce bitcoins acquisition in the near future,” Hitesh Malviya, crypto expert and Founder, itsblockchain.com told Financial Express Online.

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Interestingly, the company is now looking to sell as much as $1 billion in common shares as well, intended to add to its massive Bitcoin holding. In its S-3 filing on Monday with the US Securities and Exchange Commission, MicroStrategy said, “We intend to use the net proceeds from the sale of any class A common stock offered under this prospectus for general corporate purposes, including the acquisition of bitcoin, unless otherwise indicated in the applicable prospectus supplement. We have not determined the amount of net proceeds to be used specifically for any particular purpose. As a result, management will retain broad discretion over the allocation of the net proceeds of any offering.”

MicroStrategy Launches “At the Market” Securities Offering for Flexibility to Sell Up to $1 billion of its Class A Common Stock Over Time $MSTRhttps://t.co/qouK8pFmBF

— Michael Saylor (@michael_saylor) June 14, 2021

As of Tuesday, the company owned 92,079 Bitcoins worth $3.6 billion – the biggest among public companies that own Bitcoin, as per data from BitcoinTreasuries.org. The company said its existing bitcoins are being held by a newly formed subsidiary MacroStrategy LLC. Tesla (42,902 BTC), Galaxy Digital Holdings (16,400), Voyager Digital (12,260), and Square (8,027) were other public Bitcoin holders in the top-five bracket.

“Smart money bought the dip. In the recent price consolidation, on chain data is mostly bullish, and I have noticed a couple of large transactions by some of the big accounts. One single account which I tracked, bought 12,000 bitcoins in the last three weeks at an average price of $39,000,” added Malviya. Bitcoin had plunged from over $64,000 price mark as of April 14, 2021, to $31,800 as of June 8, 2021, before picking up to cross $40,000 level on Monday, as per data from CoinMarketCap.