On the 19th of February 2021, MicroStrategy CEO, Michael Saylor, confirmed that the firm completed a $1.05 billion debt offering to buy more Bitcoins worth $1 billion.
Additionally, the raise is a part of MicroStrategy’s dual business strategy of developing business software. At the time of writing, MicroStrategy has 71 039 of Bitcoins; this is an amount now worth $3.6 billion.
Their move comes at a time when bitcoin has yet again hit new highs at above $53k with a market cap surpassing $1 trillion, increasing buyers interest consequently.
MicroStrategy is a business intelligence company founded in 1989, and based in Tysons Corner, Virginia, in the Washington Metropolitan area. The company’s founders are Michael J. Saylor and Sanju Bansal.
The public company specializes in developing software to analyze data, thus helping in business decision making and developing mobile apps.
Building its First Bitcoin-Related Software Product
Recently, MicroStrategy also announced that it is building its first Bitcoin-related software product, right after the firm purchased the Bitcoins. At the moment, it is making plans on assembling the right team to proceed with the developments at hand. MicroStrategy posted the Blockchain Data Analyst, and Blockchain Data Engineer job postings on LinkedIn, specifying that the applicants should have advanced metrics and insights for Bitcoin.
According to MicroStrategy listings, the Bitcoin software product would offer shareable and digestible analytical insights. Additionally, MicroStrategy’s new engineer would be responsible for developing a software capable of turning valuable data into visualizations that can be shared with broader audiences.
Previously Upsized BTC Debt to $900M
On the 17th of February 2021, Microstrategy announced it would boost its debt for Bitcoin to $900M, just a day before it settled for a $600M loan. Earlier on, the business intelligence firm also promised to sell convertible debt to purchase more Bitcoins.
After MicroStrategy announced intentions to buy Bitcoin its shares dropped with more than 7%. In a press release, the business intelligence firm planned to offer its $900 million of senior convertible notes, and use the net proceeds to purchase Bitcoin. After the announcement, MicroStrategy’s shares eventually rose with more than 5% in premarket trading.
Is BTC’s Scarcity A Driving Factor?
The recent rally is adding spice to BTC’s outlook leading to an increasingly spiked interest among different major companies worldwide. Most recent was Tesla’s move to invest $1.5B into the flagship crypto.
In the past, many Wall Street companies have slowly but surely warmed up to the coin, making more purchases than would have been expected in the past. Considering the limited supply of BTC, the vigilance of huge companies to claim large quantities of the coin shows the promise it might hold for the future.
While some billionaire investors may still be wary of the coin, the crypto market should keep their eyes open for the great things that BTC may achieve soon.