The publicly traded company MicroStrategy, a big enterprise software developer, announced Tuesday that it raised its corporate bond sale from $400 million to $500 million to satisfy investor demand. The revenue will be transferred to purchase funds in Bitcoin above the 92,079 BTC the firm accumulated before.
Unnamed sources said to Bloomberg, the sale was upped after MicroStrategy received bond orders from institutional investors eager to purchase up to $1.6 billion of the corporation’s debt at 6.125% annually.
The sale of senior secured notes will allow MicroStrategy, led by Bitcoin bull Michael Saylor, to buy more Bitcoin, which dropped from $63,501 below $35,000 by just a month.
Although the average price MicroStrategy spent for its Bitcoin was $24,450, the fall last quarter caused the company to lose $284.5 million. Since BTC’s price fallen at the end of May, the company’s official value has lowered as well.
Despite the strong investor’s interest in the bonds, the company’s stock price declined by 2% today. If in February MicroStrategy sold $900 million of its existing bonds in convertible notes for over $100 per paper, also to buy Bitcoin, then now it fell to $65.