Share this article
MicroStrategy’s Most Recent Bond Drops Below Par as Bitcoin Sells Off
The price on the $500 million bond has fallen by almost three points.
By Frances Yue
Updated Sep 14, 2021, 1:15 p.m. Published Jun 22, 2021, 8:35 p.m.
MicroStrategy’s latest bond to finance the company's additional purchase of bitcoin is now trading below its face value as the price of the cryptocurrency continues to decline.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
- Prices on the $500 million bond, which closed on June 15, dropped almost three points after the company said on Monday that it completed its purchase of 13,005 bitcoin at an average price of $37,617. Bitcoin was trading at around $32,780 as of press time.
- On Tuesday, the price on the bond was trading at 97.75 cents on the dollar, down from 100.62 on Friday, according to Trace, a bond pricing service.
- Yields were at 6.53% on Tuesday, 40.5 basis points higher than its coupon rate of 6.125%. Bond prices and yields move in opposite directions.
- The bond, which is due 2028, is guaranteed by the new bitcoin MicroStrategy bought and any other digital assets the company acquires in the future.
- Meanwhile, another of the Virginia-based software company’s debt instruments, a $1.05 billion convertible bond, was trading at at 68.76, down from 74.23 on Friday.
- If bitcoin’s price remains at its current level of $32,668, the company will need to write down roughly $64 million for its recent bitcoin purchase.
- At last count, MicroStrategy held 105,085 bitcoin. The company has so far issued more than $1.5 billion in convertible notes and junk bonds to fund purchases of the cryptocurrency.
- MicroStrategy's stock also took a hit Tuesday, with shares trading down 4% as of press time.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Barclays Sees ‘Down-Year’ for Crypto in 2026 Without Big Catalysts
Spot trading volumes are cooling, and investor enthusiasm is fading amid a lack of structural growth drivers, analysts wrote in a new report.
What to know:
- Barclays forecasts lower crypto trading volumes in 2026, with no clear catalysts to revive market activity.
- Spot market slowdowns pose revenue challenges for retail-focused platforms like Coinbase and Robinhood, the bank said.
- Regulatory clarity, including pending market structure legislation, could shape long-term market growth despite near-term headwinds.
Top Stories
