MicroStrategy shares drop 8% after announcement of $400m debt raise to buy Bitcoin
BTC $18,878 (-1.4%) • ETH $566 (-3.5%) • XRP $0.57 (-5%)
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MicroStrategy has quickly become one of Bitcoin’s biggest supporters in the world of traditional firms and institutions. The business services and analytics company, based in the Eastern U.S., shocked the world when it invested $250 million from its balance sheet into BTC.
This took many by surprise for three reasons:
This was the first time a U.S. company had purchased Bitcoin with cash from its balance sheet for investment purposes.
This investment comprised more than half of its cash at the time.
And finally, in 2013, company chief executive Michael Saylor was critical of Bitcoin online.
But the company bought Bitcoin anyway, arguing that it was a better alternative to holding cash due to the vast amount of inflation and currency devaluation taking place.
The company later doubled down, buying $175 million worth of Bitcoin in September, then another $50 million worth just last week.
In total, MicroStrategy now owns $750 million worth of BTC, which it is up nearly 80 percent on.
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