MicroStrategy sells more stock and will buy Bitcoins for $500 million
Bitcoin and altcoins

MicroStrategy sells more stock to buy Bitcoins for $500 million

With the crypto market in turmoil, Bitcoin down more than 65% since its last ATH and now itself recently under fire from the U.S. tax authorities, Microstrategy has filed a document with the Securities and Exchange Commission (SEC) indicating an agreement to sell a substantial amount of stock to possibly fund the purchase of additional Bitcoins.

Microstrategy holds 129,698 BTC and still wants more

Indeed, the company has announced the completion of a $500 million private placement of financial securities for institutional investors. These securities, with a stated return of 6.125%, will be backed by future purchases in bitcoins, for a sum of about 488 million dollars.

At the current price of about $21,300, nearly 23,000 bitcoins will be added to MicroStrategy’s war chest, which currently stands at just over 92,000 BTC.

The release explained:

We intend to use the net proceeds from this offering for general corporate purposes, including the acquisition of bitcoin, unless otherwise indicated (…). We have not determined the amount of net proceeds to be used specifically for any particular purpose.

That said, despite the fact that founder Michael Saylor recently resigned as CEO to become executive chairman, Microstrategy is not giving up on its belief in a “cash-saving” bitcoin in the face of a “dollar melting like an ice cube.”

New CEO Phong Le confirmed upon taking the job that the company still plans to hold onto bitcoin for the long term. Phong said:

We have not set a specific target for the amount of bitcoin we seek to hold, and we will continue to monitor market conditions to determine whether to engage in additional funding to purchase additional bitcoins.

After the August monthly bitcoin candle closed, the observation is that it managed to exceed $20,000. According to cryptocurrency investors, this is obviously a positive growth. This is despite the announcement of Michael Saylor’s lawsuit six hours earlier.

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