MicroStrategy Seeks $750M Stock Sale, Might Buy More Bitcoin
- MicroStrategy has entered into an agreement with three companies for the sale of its class A common stock.
- The deal, worth $750M was signed with Cowen and Company, Canaccord Genuity, and Berenberg Capital.
- The proceeds could be used for general purposes and for buying additional Bitcoin, said CFO Andrew Kang.
- MicroStrategy bought 12,333 Bitcoin in the second quarter, another 467 in July this year, and holds 152,800 BTC.
A leading software development company based in the United States, MicroStrategy, has revealed plans to raise around $750 million via a stock sale, and there is a strong possibility that the company might purchase additional Bitcoin (BTC) via the funds received. Interestingly, the company is the largest corporate holder of the world’s largest cryptocurrency.
According to a filing submitted by MicroStrategy to the United States Securities and Exchange Commission (SEC) on August 1, the business software development company confirmed that it had entered into a stock purchase agreement with three companies, including Cowen and Company, Canaccord Genuity, and Berenberg Capital.
The agreement with these three companies allows MicroStrategy to sell its class A common stock for a whopping $750 million. According to the filing, the proceeds from the sale can be used for any number of general purposes, including the purchase of additional Bitcoin (BTC). Moreover, MicroStrategy CFO Andrew Kang said during a second-quarter earnings call:
“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.”
It is important to mention here that the company founded by Michael Saylor holds 152,800 bitcoins, and at current prices, the entire holding is worth close to $4.5 billion. MicroStrategy bought 12,333 bitcoins in the second quarter and another 467 in July this year, investing heavily in the world’s largest cryptocurrency.
“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,” said MicroStrategy chairman Michael Saylor to investors on Aug. 1.
Moreover, MicroStrategy also posted a net income of $22.2 million, which is a massive jump from the net loss of $1.1 billion in the prior-year period. After the company announced positive results and plans to buy more BTC, the price of the leading cryptocurrency went up by 2%.
As reported earlier by BitcoinWisdom, Berenberg Capital recently said that MicroStrategy will greatly benefit from the upcoming Bitcoin halving. The pre-halving rally is expected in four months and will continue until October 2025, as per previous trends.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
