Advertisement

Header Utility Menu

  • Subscribe
  • Advertise
  • Contact Us
  • Events

LinkedIn Facebook Twitter Instagram Get Our App

  • Login

Virginia Business

Mobile Menu

  • Issues
  • Industries
    • Banking/Finances
    • Law
    • Real Estate
    • Economic Development
    • Education
    • Energy/Green
    • Federal Contracting
    • Government
    • Healthcare
    • Hotels/Tourism
    • Insurance
    • Ports/Trade
    • Small Business
    • Technology
    • Transportation
  • Regions
    • Central Virginia
    • Eastern Virginia
    • Northern Virginia
    • Roanoke/New River Valley
    • Shenandoah Valley
    • Southern Virginia
    • Southwest Virginia
  • Reports
    • Best Places to Work
    • Business Person of the Year
    • CEO Pay
    • COVID-19
    • Generous Virginians Project
    • Legal Elite
    • Most Influential Virginians
    • Maritime Guide
    • Site Locator
    • The Big Book
    • Virginia CFO Awards
  • Company News
    • For the Record
    • People
  • Opinion
  • Lists
  • Awards/Events
    • Women in Leadership
    • Diversity Leadership Series
    • Virginia 500
    • Legal Elite
    • CFO Awards
    • Big Book of Lists
    • 100 People To Meet
    • Best Places To Work
  • Virginia 500
    • Read The Issue
    • Order a copy
    • Buy an award plaque
    • Suggest execs for 2022

Advertisement

Header Primary Menu

  • Issues
    • July 2022
    • June 2022
    • May 2022
    • April 2022
    • March 2022
    • Issues Archive
  • Industries
    • Banking/Finances
    • Law
    • Real Estate
    • Economic Development
    • Education
    • Energy/Green
    • Federal Contracting
    • Government
    • Healthcare
    • Hotels/Tourism
    • Insurance
    • Ports/Trade
    • Small Business
    • Technology
    • Transportation
  • Regions
    • Central Virginia
    • Eastern Virginia
    • Northern Virginia
    • Roanoke/New River Valley
    • Shenandoah Valley
    • Southern Virginia
    • Southwest Virginia
  • Reports
    • Best Places to Work
    • Business Person of the Year
    • CEO Pay
    • COVID-19
    • Generous Virginians Project
    • Legal Elite
    • Most Influential Virginians
    • Maritime Guide
    • Site Locator
    • The Big Book
    • Virginia CFO Awards
  • Company News
    • For the Record
    • People
  • Opinion
  • Lists
  • Awards/Events
    • Women in Leadership
    • Diversity Leadership Series
    • Virginia 500
    • Legal Elite
    • CFO Awards
    • Big Book of Lists
    • 100 People To Meet
    • Best Places To Work
  • Virginia 500
    • Read The Issue
    • Order a copy
    • Buy an award plaque
    • Suggest execs for 2022

Home News MicroStrategy ups the ante on bitcoin investment

MicroStrategy ups the ante on bitcoin investment

Tysons company increases latest announced bitcoin buy to $900M

Published February 17, 2021 by Sydney Lake

Tysons-based business software company MicroStrategy Inc. is going all in on its bitcoin strategy: The company announced Wednesday it would raise $900 million from a convertible senior notes offering set to close on Friday.

On Tuesday, the company announced a $600 million offering, which it upped to $900 million on Wednesday. Proceeds from the offering are intended to be used to buy more bitcoin, which the company has been gobbling up since last summer. 

Through cash holdings conversions and debt offerings, MicroStrategy, led by cryptocurrency advocate Michael Saylor, has bought hundreds of millions worth of bitcoin, almost all within the last six months. With bitcoin hitting an all-time high price of $50,000 on Wednesday, the company’s 70,000-plus bitcoin are worth more than $3.6 billion — more than double MicroStrategy’s purchase price.

The destiny of money is to be encrypted. https://t.co/hFC6UGI2Iy

— Michael Saylor (@michael_saylor) September 26, 2020

But while the value of bitcoin continues to rise, MicroStrategy during the past two days has seen a drop in its stock share prices. On Tuesday (when the company announced the $600 million debt offering), MicroStrategy saw a 7% drop, closing at $955 per share. The stock price has continued its decline on Wednesday, dropping to $941.80 as of 4 p.m. MicroStrategy’s stock price hit an all-time high on Feb. 9, when it was worth more than $1,270 per share.

In August 2020, MicroStrategy announced that it had converted $250 million from its cash holdings into more than 21,000 bitcoins, making it one of the first public companies to use cryptocurrency for cash holdings. Saylor said MicroStrategy would keep its bitcoin holdings in its corporate treasury reserve — which he said would be the principal holding in its treasury reserve strategy. The company in September 2020 then announced it had purchased $425 million worth of bitcoin.

By December 2020, MicroStrategy closed a convertible debt offering by raising $650 million, which it said it plans to use to increase its bitcoin holdings.

 

Subscribe to Virginia Business.

Get our daily e-newsletter.

 

Related Stories

Virginia Business logo

MicroStrategy to increase bitcoin holdings by $550M

Tysons tech firm was one of the first public companies to use cryptocurrency for cash holdings

Virginia Business logo

MicroStrategy buys $1B+ in bitcoin

Tysons-based software company now has $4.5B in bitcoin holdings

Virginia Business logo

MicroStrategy raises $650M to be invested in bitcoin

Company announced debt offering last week

Trending

William & Mary names new business school dean

Carsales.com to fully acquire Trader Interactive

UNOS CEO announces departure

Sponsored Stories

What can Supply Chain Consultants do for me?

The Lowdown on Downloads for Your Online Experience

5 Benefits of Treasury Management Services from Atlantic Union Bank

Creating An Urban Destination in Chesapeake

Advertisement

Advertisement

Trending

William & Mary names new business school dean

Carsales.com to fully acquire Trader Interactive

UNOS CEO announces departure

Sponsored Stories

What can Supply Chain Consultants do for me?

The Lowdown on Downloads for Your Online Experience

5 Benefits of Treasury Management Services from Atlantic Union Bank

Creating An Urban Destination in Chesapeake

Get Virginia Business directly on your tablet or in your mailbox!

Subscribe to Virginia Business

Advertisement

Advertisement

Footer Primary Menu

  • virginiabusiness.com
  • Subscribe
  • Advertise
  • About Us
  • Contact Us

Footer Secondary Menu

  • Industries
  • Regions
  • Reports
  • Company News
  • Events

Sign Up For Our Newsletter

Sign Up

LinkedIn Facebook Twitter Instagram Get Our App

Privacy Policy Cookie Policy

Footer Utility Menu

Copyright © 2022 Virginia Business. All rights reserved.

Site Maintained by TechArk