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In a June 7 announcement, business intelligence company MicroStrategy said it plans to raise $400 million through selling premium backed bonds and using the proceeds to buy more Bitcoin.
MicroStrategy also today announced two new subsidiaries, MicroStrategy Services Corporation and MacroStrategy LLC.
MicroStrategy Announces Proposed Private Offering of $400 Million of Senior Secured Notes to acquire additional #bitcoin. $MSTRhttps://t.co/ilhUt1M73j
— Michael Saylor (@michael_saylor) June 7, 2021
The new bonds will be fully guaranteed by MicroStrategy Services Corporation if they are issued and can be redeemed after the offering closes.
“The bonds will be fully and unconditionally secured on a high-security basis, simultaneously and individually, by MicroStrategy Services Corporation, a wholly owned subsidiary of MicroStrategy and a number of its subsidiaries. MicroStrategy may be formed or acquired upon closing of the offering,” MicroStrategy said in the announcement.
The bonds will be backed by MicroStrategy’s existing assets, including any Bitcoins obtained from the funds raised, but excluding MicroStrategy’s existing Bitcoins.
On the other hand, the 92,079 Bitcoins that MicroStrategy currently owns (worth around $3.4 billion) will be held by a new organization called MacroStrategy LLC.
However, shortly after the announcement, CEO Michael Saylor of MicroStrategy also stated his support for Bitcoin and MicroStrategy’s move this time as the right decision. By quoting the quote of the great physicist Isaac Newton. It can also be understood in another way, somewhere the criticism of Elon Musk still exists and Michael Saylor is the Isaac Newton of the Bitcoin era.
“Making a personal argument without creating an antagonist requires tact.”
“Tact is the knack of making a point without making an enemy.” – Isaac Newton on #Bitcoin
— Michael Saylor (@michael_saylor) June 7, 2021
In a separate development, MicroStrategy also announced today that it expects to incur a loss of at least $284.5 million related to HODLing BTC over the last three months. Bitcoin price has lost about 45% in recent weeks, falling from a peak of $64,000 in mid-April to $36,500 today.
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