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MicroStrategy Seeks To Sell $500M Of Stock To Fund BTC Purchases

Bitcoin

coinculture.com 12 September 2022 13:00, UTC
  
Reading time: ~2 m

MicroStrategy (MSTR), a software firm that has become a corporate bitcoin (BTC) vault, intends to sell up to $500 million in shares to fund additional bitcoin acquisitions.

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A filing with the U.S. Securities and Exchange Commission disclosed the stock sale, which will be used for general company objectives, including the bitcoin acquisition.

MicroStrategy founder Michael Saylor, who stepped down as the firm CEO and became the firm’s executive chairman to focus on BTC purchases, is not abandoning his grandiose aim to transform the company into a cryptocurrency proxy. Since 2020, he has used funds obtained from the sale of stocks and bonds to acquire around 130,000 bitcoin valued at more than $2 billion.

*MICROSTRATEGY FILES TO SELL UP TO $500 MILLION IN SHARES $MSTR

MICROSTRATEGY MAY BUY BITCOIN WITH PROCEEDS FROM SHARE SALE

— Stock Market News – Evan (@StockMKTNewz) September 9, 2022

As a result, MicroStrategy’s stock is now tied to the price of bitcoin, resulting in a $1.2 billion loss on the bitcoin wager given this year’s decline. Friday, however, the shares rose by 11% as bitcoin rose by about 10%. After the news of the stock offering, which would dilute the value of existing shares, the stock declined around 1.5% in after-hours trading.

MicroStrategy (NASDAQ:MSTR) Stock Price – Source Google

The stock offering is led by Cowen and BTIG, two of the most famous investment banks that cover crypto-related firms. Recently, the District of Columbia sued Saylor and MicroStrategy for allegedly avoiding taxes on Saylor’s revenues in the district.


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