Software development company MicroStrategy is looking to raise up to $750 million through a stock sale, with plans to potentially use the funds to acquire more Bitcoin. The announcement was made in a filing to the Securities and Exchange Commission (SEC) on August 1. MicroStrategy has entered into a sales agreement with three companies, namely Cowen and Company Canaccord Genuity, and Berenberg Capital, for the sale of its class A common stock.
The proceeds from the stock sale could be utilized for various general corporate purposes, including the acquisition of additional Bitcoin and working capital. Chief Financial Officer Andrew Kang confirmed during a second-quarter earnings call that the proceeds may also be used for the repurchase or repayment of the company’s outstanding debt.
MicroStrategy, founded by Michael Saylor, currently holds 152,800 Bitcoin, which is valued at $4.5 billion at current prices. In the second quarter, the company added 12,333 Bitcoin, followed by another 467 in July. Saylor emphasized the goal of generating incremental Bitcoin for MicroStrategy shareholders through cash flow from the business or intelligent financing options.
Since the start of this year, MicroStrategy shares have seen a significant increase in value due to the ongoing Bitcoin rally. The shares have risen nearly 200%, surging from $145.02 per share on January 3 to $434.98 as of publication. This upward trend has allowed MicroStrategy to capitalize on the positive performance of Bitcoin.
The announcement of MicroStrategy’s stock sale and potential Bitcoin acquisition had an immediate impact on the price of Bitcoin, which rose by almost 2% from $29,200 to $29,771 at the time of writing. The increase in Bitcoin’s price demonstrates the market’s positive response to MicroStrategy’s plans.
MicroStrategy’s move to acquire more Bitcoin aligns with its strategy of increasing its holdings in the digital asset. The company aims to provide its shareholders with additional value through intelligent financial operations. The pursuit of Bitcoin acquisitions reflects MicroStrategy’s confidence in the long-term potential and value of the cryptocurrency.
Overall, MicroStrategy’s decision to raise funds through a stock sale and potentially use them to acquire more Bitcoin demonstrates its commitment to increasing its exposure to the cryptocurrency. The company’s confidence in Bitcoin’s future prospects, coupled with its successful track record in the market, positions MicroStrategy as a prominent player in the cryptocurrency industry.