MicroStrategy Inc. has decided to sell corporate bonds amounting to US$400 million to fund the purchase of additional Bitcoins (BTC). Virginia-based business intelligence provider, the Tysons Corner, has said recently that they will sell US$400 million in senior secured notes. This will be the first time that a corporate bond sale was conducted to use the proceeds in buying Bitcoins. BTC’s price is currently hovering around US$32,800. This means the US$400 million proceeds can make MicroStrategy buy around 12,195 Bitcoins.
The chief economist and global strategist at Euro Pacific Capital, Peter Schiff, has tweeted:
“In an effort to keep the price of #Bitcoin and his company's balance sheet propped up, @michael_saylor announced #MicroStrategy will borrow another $400 million to buy more Bitcoin.”
He went on to say:
“The board of directors needs to stop a crazed Saylor from throwing good money after bad Bitcoin.”
However, MicroStrategy CEO Michael Saylor believes otherwise. He is at the forefront of the bitcoin movement and believes that Bitcoin is the “most secure, most reliable, most certain thing in the entire economic universe.”
MicroStrategy holds 92,079 bitcoins at an average price of $24,450 per coin. Till now, the company has invested US$2.25 billion in its BTC holdings.
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