Michael Saylor’s MicroStrategy ramps up junk-bond borrowing to plow $500 million more into bitcoin

SourceBusiness Insider
SectorFinancial Markets
CountryMiddle east

Crypto bull Michael Saylor has doubled down on his company’s huge bets on , borrowing $500 million through junk bonds to plow into the cryptocurrency – $100 million more than expected. – Saylor’s business software company based in Virginia – on Tuesday that it had sold $500 million of high-yield bonds, otherwise known as junk, which will pay an annual rate of interest of 6.125% and are due in 2028. They are believed to be the first bonds directly linked to the purchase of bitcoin.

The offering was larger than the $400 million the company to sell. MicroStrategy received around $1.6 billion in orders, , citing people with knowledge of the matter, and received interest from a large number of hedge funds. MicroStrategy has been contacted for comment. Saylor is one of the most bullish bitcoin advocates in the market. MicroStrategy now owns around 92,000 bitcoin – worth about $3.2 billion on Wednesday – and has previously issued debt to buy the crypto asset. The company estimated that the latest bond offering will give it $488 million to buy more bitcoin. Yet Saylor’s strategy of raising money to buy more bitcoin through high-yield bonds comes with risks, given the cryptocurrency’s

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