MicroStrategy, one of the famous crypto money companies in the Bitcoin field, signed an agreement for stocks. It turned out that the company, which is one of the crypto money whales famous for the amount of Bitcoin (BTC) it holds in its treasury, signed a $ 500 million agreement with an insurance company. Here are the details…
MicroStrategy, famous in the cryptocurrency space, generated $ 46 million in revenue
Michael Saylor’s MicroStrategy said it has raised $46.6 million from stock sales since it signed an agreement with insurer Cowen and Company to sell up to $500 million in common stock in September. In its most recent U.S. Securities and Exchange Commission (SEC) notice, the company also updated its “use of proceeds” statement, saying that the money raised could also go towards repayment of debt, including its term loan with Silvergate Bank (SI).
This $205 million loan, received in March 2022, is variable rate and therefore more expensive as the Federal Reserve raised short-term interest rates. The Silvergate loan expires in March 2025 and has a prepayment penalty, but that penalty is halved in March 2023, only repaying 0.25 percent of the principal balance. MicroStrategy has previously used the proceeds mostly from share sales to add to its Bitcoin (BTC) holdings.
MicroStrategy shares rise
As we reported as Kriptokoin.com, the reason behind the company’s sale of shares and bonds was to buy Bitcoin. Most recently, in September 2022, the company’s statement stated that 500 million dollars of stock could be sold. After the said announcement, 3,000 BTC was purchased. The $46 million sale in question is part of the $500 million sales plan. The proceeds can be used to repurchase MicroStrategy’s 2023 and 2027 forward convertible forecasts. It is also used to pay off a portion of the loan from Silvergate.
MicroStrategy shares have been down recently. However, it gained momentum with the recovery of Bitcoin (BTC) price. As we reported, Bitcoin has risen from a high of $16,500 to $24,900 since the beginning of 2023. Because of this, the prices of shares of companies related to Bitcoin and cryptocurrencies in general have soared. In this case, for example, MicroStrategy shares have gained 95 percent since the beginning of 2023.
Michael Saylor continues his defense of Bitcoin
Michael Saylor, co-founder and former CEO of MicroStrategy, addressed Charlie Munger’s criticism of Bitcoin, claiming that he did not take the time to understand Bitcoin. In an interview with CNBC on Friday, Saylor said he “sympathizes” with Munger’s criticisms of the wider crypto market, noting that thousands of altcoins are more than “gambling.” However, he argued that Warren Buffett’s right-hand man would have had a different opinion if he had studied Bitcoin. “If he were a business leader in South America, Africa or Asia and spent 100 hours studying the issue, he would be more bullish on Bitcoin than I am,” Saylor said.
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