Earlier in the week, it was reported that Microstrategy, one of the largest Bitcoin holders, was looking to sell $ 500 million bonds to buy more Bitcoin. The Nasdaq-listed company first suggested that it would raise $ 400 million before increasing this to $ 500 million. Furthermore, it was clear that the issued bond notes would be secured by existing Microstrategy assets and Bitcoin which would be purchased with the money raised.
Microstrategy, led by Michael Saylor, has been celebrated in recent months by the broader crypto community as it leads institutional adoption by offering conventional means for institutions to enter the market. Its largest holdings are Bitcoin and Ethereum. To date, the firm has over 90,000 BTC purchased at an average price of $ 25,000. This is now worth billions of dollars and generating profit, as Bitcoin is trading at the $ 37,000 level. So far, Microstrategy's strategy has been to buy the dip by making the current market environment ideal.
The new report has revealed that investors and especially institutional investors are interested in Bitcoin and working with Microstrategy. According to the report, the company has been offered up to $ 1.6 billion, "including interest from a large number of hedge funds."
The response of the institutions has shown unwavering trust in Bitcoin. Once critical and dismissive of the digital asset, it is clear that institutions are now backing Bitcoin to succeed. Institutions bring real strength to the market, as they have large quantities and are not afraid to sell. However, their dominance in the market always poses a threat to retailers who remain in perpetual fear that institutions will incur dumping. The case and the point is the current $ 1.5 billion in Bitcoin that Tesla currently owns.
Bitcoin has been hit hard in recent months. Within a few weeks, the digital asset was down to half its year and an ATH of $ 65,000. The most recent drop was a 10 percent elimination seen earlier in the week as investors panicked over the FBI's seizure of Bitcoin. Paid as a ransom in the Colonial Pipeline saga, the FBI was able to seize approximately $ 2.3 million worth of Bitcoin and retail investors panicked believing the FBI could hack the headlines.
As explained by market leaders like Adam Back, the FBI, and indeed no entity can hack Bitcoin. The FBI simply gained access through a server used by the hackers.
Since the crash, Bitcoin has found stability and is recovering above $ 37,000.