Bitcoin (BTC) finally crossed $ 20,000 on December 16, 2020. The massive acquisition of BTC by institutional investors has paid off. 5 days earlier, MicroStrategy had managed to raise $ 650 million to invest in BTC. Bitcoiners applaud, some analysts cringe at this exposure of the company to a known volatile Bitcoin.
A micro step for society, a big step for Bitcoin
The announcement of the issuance of senior convertible bonds by MicroSrategy to finance a new acquisition of Bitcoin had sparked a degree of skepticism.
The company’s target amount was $ 400 million. December 11, 2020, MicroSrategy confirmed that he had successfully raised $ 650 million through these bonds at a rate of 0.750%.
Interest will be paid to holders semi-annually between June 15 and December 15, from 2021.
The press release states that MicroSrategy intends to invest the net proceeds from the sale of the bonds in Bitcoins, in accordance with its treasury policy, until the identification of working capital requirements and other business objectives.
The securities were issued under Rule 144A of Securities act.
MicroStrategy exhibits alongside other listed companies
The fundraising was finalized a few days after the announcement of MicroSrategy. The company would currently hold 40,824 BTC, valued at over $ 898 million at current prices. Bitcoin is trading above $ 22,000 at the time of writing.
Some analysts fear that MicroSrategy is overexposed to the volatility of the Bitcoin. Citigroup recently revised the company’s rating from neutral to sell.
MicroSrategy is not the only public company holding BTC. The insurance company MassMutual and listed companies like Galaxy digital, Square and Hut-8 Mining Corp, invested between $ 36 and $ 134 million in Bitcoin.
Should Satoshi Nakamoto be on the list of the best quarterbacks of all time? Bitcoin’s daddy’s invisible hand has raised his child to $ 20,000 in a decade. Companies like MicroStrategy, MassMutual and Grayscale are leading the way for other private or public companies looking for a refuge from the devaluation of fiats. A BTC under $ 20,000, it was ultimately cheap to pay.
Litecoin, welcome in the Silver Age