Microstrategy’s crazy new bet to buy even more bitcoins

Microstrategy announced the launch of a $600 million convertible bond issue to buy even more bitcoins.

As the cryptocurrency market booms, more and more people are betting on bitcoin, including industrialists. Microstrategy, the American software publisher, has decided to strengthen its status as a bitcoin specialist. As a reminder, the group of Michael Saylor, great cryptocurrency guru, has become the company that holds the most bitcoins in the world, with 193,000 bitcoins in its treasury.

But the group does not intend to stop there. On Monday, he announced the launch of a $600 million convertible bond issue… to buy even more bitcoins.

“Microstrategy intends to use the net proceeds from the sale of the Notes to acquire additional Bitcoin and for general corporate purposes,” the press release states.

A falling action

So far, nothing unusual, except that usually a company launches such an operation to finance the development of its activity. There, the main objective is to buy even more bitcoins and the group does not hide it. Microstrategy has so linked its future to bitcoin that it will finance all of this on credit and with the possibility of transforming its debt into capital to have more means to finance its bitcoin purchases.

With the spectacular rise in the price of the asset, this is yet another bet of the century for the company which is hoping for an increase in prices, otherwise the entire capital structure of Microstrategy is in danger. Despite the announcement with great fanfare, shares of Microstrategy fell on Monday, down 3.3% to $1,290.