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- A recent report has revealed that Microstrategy has gotten offers of up to $1.6 billion for its bonds after it sought to raise $500 million.
- With the funds going to buy more Bitcoin, the high interest in the bonds has highlighted unwavering support from institutions despite the recent price slump.
Earlier in the week, it was reported that Microstrategy, one of the single largest Bitcoin holder, was looking to sell bonds of $500 million to buy more Bitcoin. The Nasdaq-listed company first suggested it would raise $400 million before increasing this to $500 million. It was further clear that the bond notes issued would be secured by Microstrategy’s existing assets and Bitcoin that would be bought with the raised money.
Microstrategy, led by Michael Saylor has been celebrated in the last few months by the wider crypto community as it leads institutional adoption by offering mainstream means for institutions to get into the market. Its biggest holdings are Bitcoin and Ethereum. To date, the firm holds over 90,000 BTC bought at an average price of $25,000. This is now worth billions of dollars and in profit as Bitcoin trades at the $35,000 level. Microstrategy’s strategy has thus far been buying the dip making the current market environment ideal.
Entities I control have now acquired 111,000 #BTC and have not sold a single satoshi. #Bitcoin Forever.
— Michael Saylor (@michael_saylor) May 19, 2021
The new report has revealed that investors and especially institutional investors are interested in Bitcoin and working with Microstrategy. According to the report, the company has been offered up to $1.6 billion “including interest from a large number of hedge funds.”
The response from institutions has demonstrated unwavering confidence in Bitcoin. Once critical and dismissive of the digital asset, it is clear that institutions are now backing Bitcoin to succeed. Institutions bring a real force into the market as they hold big amounts and do not panic sell. However, their dominance in the market always poses a threat to retailers who remain in perpetual fear of this institutions dumping. Case and point are the current $1.5 billion worth of Bitcoin currently held by Tesla.
Bitcoin has in recent months been hit hard. In a few weeks, the digital asset has halved from its year and ATH of $65,000. The most recent drop was a 10 percent wipe out witnessed earlier in the week as investors panicked over the FBI’s seizure of Bitcoin. Paid as ransom in the Colonial Pipeline saga, the FBI was able to seize roughly $2.3 million worth of Bitcoin and retail investors panicked believing that the FBI was able to hack the holders.
As explained by market leaders such as Adam Back, the FBI and indeed no entity can hack Bitcoin. The FBI simply got access through a server used by the hackers.
Pro-tip: they didn’t and could not “hack” anything. They just asked an cloud service to give them control of a rented server, or hosted wallets key etc. https://t.co/49ynaLMMXr
— Adam Back (@adam3us) June 8, 2021
Since the drop, Bitcoin has found stability and is staging a recovery headed above $35,000.
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