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 onSaylor 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.
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