MicroStrategy Will Buy Again Bitcoin Worth IDR 10 Trillion

MicroStrategy will buy another Bitcoin worth IDR 10 trillion (Photo; Doc. Cryptonews)

JAKARTA - The well-known business intelligence company, MicroStrategy, has again strengthened its Bitcoin strategy with plans to raise 700 million US Dollars (Rp10 trillion) through the issuance of senior conversion bonds. This move demonstrates the company's strong commitment to continuing to increase Bitcoin ownership, although the crypto market still shows high volatility.

MicroStrategy's plan is aimed at institutional investors, where they can buy unsecured senior bonds that will mature in 2028. Investors have the option to convert the bonds into cash, MicroStrategy shares, or a combination of both.

Part of the proceeds from the sale of these bonds will be used to pay off existing bonds worth 500 million US Dollars (Rp7.6 trillion). The rest will be allocated to buy more Bitcoins.

This is not the first time MicroStrategy has used this strategy. Since August 2020, the company has made Bitcoin the core part of the company's cash strategy. To date, MicroStrategy has amassed around 244,800 BTC, making it the world's largest public company with Bitcoin holdings more than 1% of Bitcoin's total supply.

The fundraising plan comes after MicroStrategy just acquired 18,300 Bitcoins worth 1.11 billion US Dollars (Rp17 trillion), which was carried out amid a market decline. This purchase increases its company ownership and strengthens its position in the crypto world. In the past year, Bitcoin has seen a 17% increase, which also boosted MicroStrategy's share price to more than 1,500 US Dollars (Rp23 million) per share following the announcement.

Michael Saylor, Executive Chair of MicroStrategy, is the most vocal figure in supporting Bitcoin. He is known for his strong belief that Bitcoin is a promising long-term investment. Saylor's commitment to buying Bitcoin at various prices reflects his vision for the future of this digital currency, which is considered to be increasingly dominant in the future.

Although MicroStrategy's strategy seems to have paid off so far, this move is certainly not free from risk. The well-known crypto market is very volatile, and the price of Bitcoin could change drastically in a short time. However, to date, the company's strategy to continue to accumulate Bitcoin has increased investor confidence and the value of the company's shares.

However, the issuance of these bonds still depends on market conditions. There is no guarantee of a time or settlement requirement. However, with a long-term focus and strong confidence in Bitcoin, MicroStrategy remains steadfast in its efforts to continue to increase Bitcoin ownership as part of their financial strategy.