Management of the technology company MicroStrategy plans to buy Bitcoins worth a whopping $42 billion.
The firm's employees hired employees from several banks to sell:
- Shares worth $21 billion;
- Fixed income securities worth $21 billion.
MicroStrategy's business strategy involves buying bitcoins, but does not set clear limits, so it is unknown whether the organization will spend all the proceeds on cryptocurrency. The company began investing in the digital asset in September 2020 and is currently owns 252 BTC worth $220 billion. The investment in Bitcoin turned out to be profitable and brought the firm an unrealized profit of 18,3%.
We believe that raising $42 billion is an ambitious but achievable goal. Bitcoin goes up, then ultimately their [MicroStrategy employees'] tactics will work," said Sean McNulty, director of trading at liquidity provider Arbelos Markets.
However, stock market participants reacted negatively to MicroStrategy's plan to sell securities to buy bitcoins with the proceeds. As a result, the company's shares have fallen in the last 24 hours fell by more than 4%. However, since the beginning of the year they have increased in price by 257%, so a small correction will only slightly cool the overheated market of MicroStrategy assets.