Copy link
Increase text size
Decrease text size
Link copied

MicroStrategy plans to buy more Bitcoins by selling up to $500M of stock

Bitcoin plunged below $18,700 last week but the crypto eventually recovered and, at the time of writing, BTC traded at $22,175.29.

Image by Ricardo Goncalves from Pixabay .

Mon, 12 Sep 2022, 08:42 am UTC

While other crypto investors might have become increasingly concerned about the recent price movements of Bitcoin (BTC), MicroStrategy remains unperturbed as it vows to continue implementing its digital assets strategy. In fact, the company plans to raise capital by selling shares and using the proceeds to buy more BTCs.

MicroStrategy (MSTR), a Virginia-based software developer also known for owning the largest Bitcoin holdings among publicly traded firms, revealed its intention to sell up to $500 million of stock to fund its planned crypto purchase in a filing with the U.S. Securities and Exchange Commission. The company has tapped the services of Cowen and Company, LLC and BTIG, LLC to facilitate the transaction.

“We have entered into a Sales Agreement (the ‘Sales Agreement’) with Cowen and Company, LLC and BTIG, LLC (collectively, the ‘Agents’), dated September 9, 2022, relating to the sale of shares of our class A common stock, par value $0.001 per share, offered by this prospectus supplement,” MicroStrategy said. “In accordance with the terms of the Sales Agreement, under this prospectus supplement, we may offer and sell shares of our class A common stock having an aggregate offering price of up to $500,000,000 from time to time through one or more of the Agents, acting as our sales agents.”

Aside from growing its enterprise analytics software business, MicroStrategy’s other corporate strategy is to acquire and hold Bitcoin. “Our bitcoin acquisition strategy involves acquiring bitcoin with our liquid assets that exceed working capital requirements, and from time to time, subject to market conditions, issuing debt or equity securities or engaging in other capital raising transactions with the objective of using the proceeds to purchase bitcoin,” the company reiterated in its latest filing.

It appears that BTC’s recent plunge below $20,000 has not deterred the company from pursuing its digital assets strategy. On September 7, Bitcoin plunged below $18,700 but the crypto eventually recovered starting September 9. At the time of writing, BTC traded at $22,175.29 based on Coinmarketcap data.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

  • Bitcoin (btc) $20,044.00 (+5.25%)
  • Ethereum (eth) $1,370.55 (+3.69%)
  • USD Coin (usdc) $0.999718 (+0.07%)
  • BNB (bnb) $281.05 (+2.65%)
  • XRP (xrp) $0.468593 (-0.86%)
  • Bitcoin (btc) $20,044.00 (+5.25%)
Jul 15, 2021 (Thursday)
13:30
BTC Surges by 1.16% Within 5 Mins, Marking 31,824.01 USDT
12:06
BTC Surges by 1.12% Within 5 Mins, Marking 32,104.8 USDT
10:25
BTC Drops by 1.03% Within 5 Mins, Marking 32,171.88 USDT
02:13
TriumphX Scouts 'MINAMCOMPANY' CEO Woo-Seong Lee As Creative Director
02:00
ETH Tops List Of Crypto Net Inflow With $298.96 Mln In Past 10 Hours
Jul 14, 2021 (Wednesday)
13:14
BTC Surges by 1.03% Within 5 Mins, Marking 32,738.08 USDT
09:03
BTC Surges by 1.01% Within 5 Mins, Marking 31,899 USDT
02:30
Crypto Market Sentiment On Jul 14: Market In "Extreme Fear"
02:00
ETH Tops List Of Crypto Net Outflow With $224.97 Mln In Past 10 Hours
Jul 13, 2021 (Tuesday)
02:30
Crypto Market Sentiment On Jul 13: Market In "Extreme Fear"
02:00
ETH Tops List Of Crypto Net Outflow With $178.61 Mln In Past 10 Hours
Jul 12, 2021 (Monday)
02:30
Crypto Market Sentiment On Jul 12: Market In "Extreme Fear"
02:00
BTC Tops List Of Crypto Net Inflow With $164.82 Mln In Past 10 Hours
Jul 11, 2021 (Sunday)
21:31
BTC Surges by 1.02% Within 5 Mins, Marking 34,475.6 USDT
10:00
ETH Tops List Of Crypto Net Inflow With $122.76 Mln In Past 18 Hours
06:17
SOBA Listed On LATOKEN
02:30
Crypto Market Sentiment On Jul 11: Market In "Extreme Fear"
02:00
BTC Tops List Of Crypto Net Outflow With $87.56 Mln In Past 10 Hours
Jul 9, 2021 (Friday)
21:40
BTC Surges by 1.08% Within 5 Mins, Marking 33,911.8 USDT
02:30
Crypto Market Sentiment On Jul 09: Market In "Extreme Fear"
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.