MicroStrategy, one of the largest corporate holders of Bitcoin, said proceeds of the sale could be used to buy up even more Bitcoin.
United States-based software development company MicroStrategy is planning to raise up to $750 million via a stock sale and says it may use the proceeds to buy more Bitcoin (BTC).
In a filing to the Securities and Exchange Commission on Aug. 1, MicroStrategy announced it has entered into a sales agreement with three companies — Cowen and Company Canaccord Genuity and Berenberg Capital — relating to the sale of its class A common stock.
MicroStrategy said the proceeds of the proposed sale could be used for a variety of general corporate purposes, such as the acquisition of more Bitcoin and working capital.
King Kookbabbler's old company #MicroStrategy has filed notice with the SEC that it wants to dump up to $750 million in $MSTR on the market... in addition to the $335 million they just dumped on the market.
— ⚯ M Cryptadamus ⚯ | @[email protected] (@Cryptadamist) August 1, 2023
they use the money to buy bitcoins@crypto1nfern0 h/t @eliasbar9 https://t.co/zxSNIIu9Q7 pic.twitter.com/fvGgq1uY5V
“As with prior programs, we may use the proceeds for general corporate purposes, which include the purchase of Bitcoin as well as the repurchase or repayment of our outstanding debt,” MicroStrategy Chief Financial Officer Andrew Kang said during a second-quarter earnings call.
The Michael-Saylor-founded firm currently holds 152,800 Bitcoin, worth $4.5 billion at current prices. It added 12,333 Bitcoin in the second quarter and another 467 in July.
“Our objective is to find ways to generate incremental Bitcoin for our shareholders and do that with either cash flow from the business or do it through intelligent accretive financings of equity or debt or other intelligent operations,” MicroStrategy Chairman Michael Saylor told investors on Aug. 1.
Related: MicroStrategy returns to profit and now owns $4.4B worth of Bitcoin
The price of Bitcoin rose nearly 2% immediately following the announcement, climbing from $29,200 to $29,771 at the time of writing.
Shares in MicroStrategy have benefited significantly from the ongoing Bitcoin rally, having now risen nearly 200% since the start of this year. MSTR shares surged from $145.02 per share on Jan. 3 to $434.98 at the time of publication, according to data from Google Finance.
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