- MicroStrategy offered $400 million of senior secured notes to all qualified institutional investors
- The senior secured notes will be due in 2028 and all the proceeds from the transaction will be used to buy Bitcoin.
MicroStrategy, a firm headed by its CEO Michael Saylor is borrowing $400 million to buy Bitcoin. Specifically, MicroStrategy is offering $400 million of senior secured notes to all qualified institutional investors. These notes will be due in 2028 and all the proceeds from the transaction will be used to buy Bitcoin.
Read CRYPTONEWSLAND on
google news
Saylor explained:
We say bitcoin is hope. Bitcoin fixes everything…that certainly was the case with our stock. It imbued life into the company…morale was dramatically boosted. We just had the best first quarter we’ve had in a decade.
Saylor added that buying Bitcoin helped MicroStrategy expand its market reach and services. “The big breakthrough is I can convert my cash from a liability to an asset and then we realized that if that asset is going to go up by more than 10% a year, and you can borrow money at 5% or four, or three, or two, then you should pretty much borrow as much money as you can and flip it into the asset,” Saylor said.
However, these movements made by MicroStrategy gathered different reactions across the financial world. Peter Schiff, a chief economist and global strategist, reacted in a tweet post, he posted:
Regardless, Bitcoin continues to be recognized by many nations around the world. For this reason, the mass adoption of Bitcoin is inevitable.
In other news, El Salvador has become the most recent country in the world to recognize Bitcoin as legal tender. As a result, Other countries in the Central and South American continent such as Paraguay and Panama may follow suit.
Related News
disclaimer read moreCrypto News Land (cryptonewsland.com) , also abbreviated as “CNL”, is an independent media entity — we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
