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

MicroStrategy said a newly formed subsidiary MacroStrategy LLC is holding its existing bitcoins. (Representative image) The world’s biggest public Bitcoin holder MicroStrategy has raised $500 million in the bond sale — $100 million more than 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.

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

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Interestingly, the company now wants to sell as much as $1 billion in common shares, 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 number of net proceeds to be used specifically for any particular purpose. As a result, management will retain broad discretion over allocating 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 a newly formed subsidiary MacroStrategy LLC is holding its existing bitcoins. 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. Bitcoin had plunged from the over $64,000 price mark as of April 14, 2021, to $31,800 as of June 8, 2021, before picking up to cross the $40,000 level on Monday, as per data from CoinMarketCap. In the recent price consolidation, on-chain data is mostly bullish, and I have noticed a couple of large transactions by some large accounts. One account I tracked bought 12,000 bitcoins in the last three weeks at an average price of $39,000,” added Malviya.