MicroStrategy said it may sell $1B in stock after announcing massive BTC purchase
The business intelligence firm announced it would use $488 million from the proceeds of a private offering sale to buy Bitcoin, the same day company said it may also sell up to $1 billion of its stock for the same reason.
The company would be launching an “at the market” securities offering which would allow it to sell up to $1 billion of its Class A Common stock over time, MicroStrategy said In a Monday S-3 filing for the U.S. Securities and Exchange Commission.
The firm said it intended to use the proceeds from the offering “for general corporate purposes, including the acquisition of Bitcoin.”
“Bitcoin does not pay interest or other returns and so the ability to generate a return on investment from the net proceeds from this offering will depend on whether there is appreciation in the value of Bitcoin following our purchases of Bitcoin with the net proceeds from this offering,” said the filing. “Future fluctuations in Bitcoin trading prices may result in our converting Bitcoin purchased with the net proceeds from this offering into cash with a value substantially below the net proceeds from this offering.”
MicroStrategy held 92,079 Bitcoin, approximately $3.7 billion as of June 4, with the company saying today it intended to increase holing purchase with an additional $488 million in cryptocurrency, According to the SEC filing.
The filing shows MicroStrategy purchased its existing holdings BTC at the price of $24,450, meaning that the company has seen the value of its crypto increase by almost $1.5 billion.