MicroStrategy Has Raised $650 Million Worth Of Convertible Bonds To Finance More

[Bitcoinmoon12]

MicroStrategy, the largest independent publicly-traded business intelligence company announced on Dec.11 it raised $650 million worth of convertible senior notes at a rate of 0.750% due in 2025, up from a recently boosted $550 million, in a convertible senior note sale designed to allow the company to buy more bitcoin. At $650 million, MicroStrategy can purchase over 36,300 BTC at current prices.

Source: https://azcoinnews.com/microstrategy-has-raised-650-million-worth-of-convertible-bonds-to-finance-more-bitcoin.html

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[Walterhank]

MicroStrategy seems to be interested the most in BTC. They are heavily invested in it and I guess this is definitely getting attention from other firms that may ask themselves whether it is a good idea to keep almost everything in cash or low yielding treasury bills etc. Another thing is that their stock is up about 74% since first buying BTC.

[Tushar Ramani]

Shouldn't we worried about upcoming dumps from them? (dumps made for the sake of getting profits?). I think such large investments are going to be terrific for small and individual investors. Please correct me if I am wrong.

[Poker Player]

Now all we need is that little by little more companies join what MS is doing. I suppose this is what will happen and it will raise the price both for the purchases of these companies and for the publicity it involves so that the masses will go from seeing bitcoin as something rare to seeing it as an asset of great value.

[bitbollo]

Shouldn't we worried about upcoming dumps from them? (dumps made for the sake of getting profits?). I think such large investments are going to be terrific for small and individual investors. Please correct me if I am wrong.

market has grown constantly in the last years and this is just a sort of "natural evolution" .
it's just matter of size since nowadays these big players are investing in bitcoin and other cryptocurrencies too.
the same since the market is big enough, it's very hard make a massive dump since other investors will buy immediately your coins. 

[DougM]

MicroStrategy, the largest independent publicly-traded business intelligence company announced on Dec.11 it raised $650 million worth of convertible senior notes at a rate of 0.750% due in 2025, up from a recently boosted $550 million, in a convertible senior note sale designed to allow the company to buy more bitcoin. At $650 million, MicroStrategy can purchase over 36,300 BTC at current prices.

Source: https://azcoinnews.com/microstrategy-has-raised-650-million-worth-of-convertible-bonds-to-finance-more-bitcoin.html

A related article with musings on why this news hasn't had too much impact on the price yet I found interesting:

Efficient Market Hypothesis: MicroStrategy’s $650M Bitcoin Buy Has Barely Been Priced In
https://www.newsbtc.com/analysis/btc/efficient-market-hypothesis-microstrategys-650m-bitcoin-buy-has-barely-been-priced-in/

...
Why Isn’t The Crypto Market Pricing In New Demand Information As Supply Struggles Persist?
$650 million worth of Bitcoin at current prices represents over 36,000 BTC – a whale-sized position by crypto standards. The capital is enough to beat out any cryptocurrency’s entire market cap from rank 39 and below, to put things into perspective.

The fact that the crypto market has yet to price in such information, has Nic Carter questioning “efficient market theory.” According to Wikipedia, efficient market theory, in a nutshell, is the idea that asset prices currently reflect all available information.

But Saylor has made his intent to buy such a large sum of Bitcoin a completely public and pre-planned affair, yet the price per BTC has declined since.

However, there could be a few reasons for this. Despite the fact that Bitcoin has real inherent value, its price is primarily driven by speculation, and a fair market value is extremely difficult to establish.

Essentially, because the crypto investor base believes that Bitcoin will almost certainly reach prices of $100,000 or more next year and beyond, that information got priced in well ahead of Saylor’s display, resulting in the cryptocurrency’s rally becoming overheated too quickly.

FOMO caused a powerful bullish impulse because people have very little idea how to price this asset currently. Due to this, selloffs become just as severe quickly. Trends in speculative assets can overextend in both directions.

Another theory is that investors are viewing Saylor’s “all-in” type approach to Bitcoin a bit reckless considering the uncertainty that still remains surrounding the asset.

Regulation could soon become a factor, quantum computers are in development that could make the cryptography protecting Bitcoin less secure, and more. In essence, MicroStrategy itself is also speculating on Bitcoin, and speculation in the business world isn’t always the safest and most sound (micro) strategy.