Holding Bitcoin Worth 18.5 Trillion KRW
Company Stock Price Soars Alongside Bitcoin
Recently, as the price of the cryptocurrency Bitcoin reached an all-time high and continued its upward rally, the U.S. software company MicroStrategy announced that it would increase its Bitcoin accumulation by issuing additional convertible bonds.
According to a report by Bloomberg on the 13th (local time), MicroStrategy, known for its Bitcoin investments, announced in a press release that it would issue $500 million (approximately 660 billion KRW) worth of unsecured senior convertible bonds maturing in 2031. The company had previously purchased Bitcoin with $821 million (approximately 1.1 trillion KRW) raised from convertible bonds maturing in 2030, which closed on the 8th.
MicroStrategy plans to offer initial purchasers of the newly issued convertible bonds an opportunity to buy up to an additional $75 million (approximately 100 billion KRW). However, the issuance plan may change, and the raised funds could be used for general corporate purposes, the company added.
Michael Saylor, the company's co-founder and chairman, has been buying Bitcoin since 2020 as a hedge against inflation and an alternative to holding cash. In the first quarter of this year alone, he invested over $1 billion (approximately 1.3 trillion KRW) in Bitcoin, which exceeds half of the total amount purchased last year. The total value of Bitcoin currently held by MicroStrategy amounts to $14 billion (approximately 18.5 trillion KRW).
Additionally, Coinbase Global, the largest cryptocurrency exchange in the U.S., announced on the 12th that it plans to issue $1 billion worth of senior convertible bonds for repaying existing debt and general corporate purposes. Cryptocurrency-related companies are leveraging the Bitcoin price rally as momentum for their stock price increases. Since Chairman Saylor began purchasing, Bitcoin's price has risen more than 675%, and it has increased about 70% this year alone due to the launch of Bitcoin spot exchange-traded funds (ETFs). Supported by this, Coinbase and MicroStrategy stocks have surged 45% and 180%, respectively, so far this year.
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