The yield on supply was reduced to 6.125% due to high demand.
Hedge funds were among the most interested in investing.
American business intelligence company MicroStrategy maintains a huge appetite for investments in bitcoin (BTC). After it was announced that the corporation would sell 400 million dollars in bonds, and thus expand its exposure in the cryptocurrency, it was unofficially reported that the organization received offers for more than 1.6 billion dollars.
After considering the capital offer, MicroStrategy adjusted the amount to be sold at 500 million dollars, as reported by the company, yesterday, June 8, through a statement. The so-called senior bonds will have an annual yield of 6.125% maturing in the year 2028.
“MicroStrategy intends to use the net proceeds from the sale of the notes to acquire more bitcoin. The notes and the corresponding guarantees are offered and sold to qualified institutional buyers, ”explained MicroStrategy, who reportedly adjusted the rate of return down due to the high demand for its offering.
The commercialization of the bonds will close on June 14, provided that the usual closing conditions are met. The company also recalled that the management of all its bitcoins will be in the hands of a new subsidiary called MacroStrategy, a fact previously reported by CriptoNoticias.
Capitals interested in MicroStrategy and bitcoin
According to people close to the negotiation, after MicroStrategy announced its decision to sell bonds to invest again in bitcoin, the company received multiple offers that exceeded $ 1.6 billion. Among the interested firms would have been some hedge funds, according to Bloomberg in an article published on Tuesday, June 8.
The informants, who asked not to be identified because it was a private operation, indicated that the first estimates suggested that the rate of return would be between 6.25% and 6.5%. This would show that institutional funds are giving MicroStrategy a vote of confidence.
The news pushed the company’s share price up 10% on the equity markets. According to Yahoo Finance metrics, the company’s shares were trading yesterday, June 8, at $ 459. However, on Wednesday the price rose to $ 504.
MicroStrategy is one of the companies that leads institutional investments in bitcoin, something that began to capitalize in the second half of 2020. Currently the company manages about 92,079 bitcoins, which at market price represent more than 3,300 million dollars.