Saylor's MicroStrategy may acquire more Bitcoin with $750M stock sale
August 2, 2023 6:35 AM
One of the biggest Bitcoin-holding companies in the world, MicroStrategy, stated that the sale's revenues might be used to purchase more Bitcoin.
MicroStrategy, a software development company based in the United States, plans to raise up to $750 million through a stock offering and claims the proceeds may be used to purchase more Bitcoin (BTC).
MicroStrategy disclosed the sale of its class A common shares in a filing→ with the Securities and Exchange Commission (SEC) on August 1. The agreement was reached with Cowen and Company, Canaccord Genuity, and Berenberg Capital.
The proceeds of the proposed sale, according to MicroStrategy, might be utilized for a range of general company purposes, including the purchase of more Bitcoin and working capital.
MicroStrategy CFO Andrew Kang noted on a second-quarter earnings call that the company "may use the money for general business purposes, including the purchase of Bitcoin and redemption or settlement of our outstanding debt."
The corporation formed by Michael-Saylor presently controls 152,800 Bitcoin, which is worth $4.5 billion at current pricing. In the second quarter, it gained 12,333 Bitcoin, followed by 467 in July.
On August 1, MicroStrategy's chairman Michael Saylor told investors, "Our objective is to find ways of generating incremental bitcoin for our stockholders and to do that with a combination of cash flow from the business or do that through intelligent accretive financings of debt or equity or other intelligent operations."
Bitcoin's price jumped about 2% shortly after the announcement, rising from $29,200 to $29,771 at the time of writing.
MicroStrategy stock has benefited greatly from the present Bitcoin boom, rising roughly 200% since the beginning of the year. According→ to Google Finance, MSTR shares increased from $145.02 per share on Jan. 3 to $434.98 at the time of writing.