MicroStrategy plans to use part of its net profit of $687.8 million, after early buyer discounts, to acquire more Bitcoin for its own treasury.
The company already holds a significant amount of Bitcoin, and according to its latest filings, it now holds approximately 214,400 Bitcoin, valued at roughly $14 billion, making it the largest BTC holder in the world.
The notes will have an annual interest rate of 2.25% and will mature in June 2032, although MicroStrategy will retain the right to early redeem the notes under certain circumstances after June 2029.
Crypto startup funding exceeds $100 billion in 10 years
The cryptocurrency industry has seen an influx of venture capital for the past decade, and with the recent surge in investments due to the cryptocurrency market surge, total funding is estimated to exceed $100 billion.
Data from DeFiLlama suggests the total amount raised since 2014 could reach $101 billion, while The Block Research puts the figure closer to $95 billion since 2017. While venture capital and token sales have been key drivers of the cryptocurrency space’s growth, the billions of dollars invested haven’t necessarily translated into success stories.
Traditional exits like big acquisitions or public offerings have been few and far between, and according to Pantera Capital’s Paul Veladitakit, have “taken longer than you’d typically expect from a traditional VC firm.” Coinbase’s direct listing in 2021 was a rare exception.
High-profile collapses like FTX and BlockFi have added to investor scars, leading to major players like Tiger Global and Temasek exiting the space. Temasek wrote down a significant portion of its stake in FTX after the collapse and said last year it had no plans to invest in crypto exchanges.
Looking at deal activity, Coinbase Ventures has led the way with the most investments since 2017, and in the most recent quarter, funding for crypto ventures increased to $2.5 billion, coinciding with an overall rise in the cryptocurrency market.
