As Musk’s attitude toward bitcoin is repeated and erratic, MicroStrategy, which previously went on a bitcoin buying spree, is preparing to issue $400 million in debt to finance the purchase of bitcoin and other digital currencies. Bitcoin had a short-lived rally after the news was announced, but the rally failed to last.
According to a newly released statement, MicroStrategy said it will raise $400 million to buy bitcoin and other digital assets through a private debt offering of senior secured notes for qualified institutional investors that will mature in 2028, depending on market conditions. MicroStrategy is currently negotiating with investors to issue debt at a junk bond yield of 6.25%-6.5%, the media said. This is the first time in history that junk debt has been issued for the purchase of bitcoin. On December 7 of last year, MicroStrategy also announced a $400 million convertible bond issue and invested the proceeds in bitcoin.
In addition, MicroStrategy said in a statement that the 92,079 bitcoins it now holds will be transferred to a newly created subsidiary, MacroStrategy. According to statistics, the average purchase price of these bitcoins was $24,450 per coin, representing a nearly 50% gain at current market prices.
It should be noted, however, that MicroStrategy said in a June 7 regulatory filing with the SEC that it expects to record at least $284.5 million in bitcoin-related impairment losses for the three-month period ending June 30 due to the volatility of the currency’s price in the second quarter.
In posting the full statement from MicroStrategy, financial blog ZeroHedge also quoted the firm’s CEO Michael Saylor. He argued that traditional investments had lost all appeal before bitcoin and that people could never own anything in real life. In addition he said that Bitcoin is the safest, most reliable and sure thing in the entire economic system.
MicroStrategy’s plan to raise money to buy the coin comes at a time when Musk’s relationship with Bitcoin is once again cooling off. Musk sent out two cryptic tweets on June 4, including “#bitcoin,” a heartbroken emoji and a photo of a couple discussing a breakup. The news had Bitcoin falling nearly 6% in 9 hours, from above $39,000 to near $36,000. The signs of a breakup between Musk and Bitcoin also left a bunch of Bitcoin fans “brokenhearted”. During Friday’s Bitcoin 2021 conference, Max Keiser, host of the financial news show Keiser Report, interviewed Michael Saylor before Saylor repeated “we’re not selling” several times in front of the audience, using the expletive “Some attendees also took to social media to express their frustration with Musk.
But according to Forbes.com, Musk’s attention to ethereum appears to be growing at a time when relations with bitcoin are chilling. In a Twitter commentary on an interview with researcher and audio blogger Lex Fridman, Ether co-founder Vitalik Buterin said he largely agreed with Vitalik’s views. At the time, Vitalik noted in the interview that it would be amazing if dogcoins were somehow connected to ethereum and people could then trade dogcoins at thousands of transactions per second.
Following the news of MicroStrategy’s debt buyout, bitcoin was spurred to a slight rally in the early morning hours of the U.S. session, but the rally failed to sustain and then turned around and fell to near the $36,000 mark.
The CME bitcoin futures BTC main contract was at $34,495 late Monday (June 7) in New York, down 6.66% from Friday’s New York session, and trading in the $37,015-34,000 range during the session. the CME ethereum futures DCR main contract was at $2,662.00, down 2.54% from Friday, and trading in the $2,867.00-2,641.50 range during the session. USD range. Ether’s 24-hour and 7-day losses were smaller relative to bitcoin. Bitcoin fell below $34,000 at 5:00 am BST early Tuesday morning, touching a short term low of $33,563, the lowest since May 30, and a 24-hour drop of 5.8%.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/microstrategy-issued-400-million-in-junk-bonds-to-continue-buying-coins-and-the-ceo-once-said-i-will-not-sell-even-if-i-die-damn-musk/
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