Bitcoin

MicroStrategy Could Sell Up To $500 Million In Stock To Buy More Bitcoin

According to a fresh prospectus filed to the Securities and Exchange Commission (SEC), MicroStrategy has a deal with brokers Cowen and Company and BTIG to sell up to $500 million in stock with the potential to buy more Bitcoin.

“We intend to use the net proceeds from this offering for general corporate purposes, including the acquisition of bitcoin, unless otherwise indicated in the applicable prospectus supplement. We have not determined the amount of net proceeds to be used specifically for any particular purpose.”

Under former CEO and Bitcoin bull Michael Saylor, MicroStrategy started adding significant amounts of Bitcoin to its balance sheet.

MicroStrategy Could Sell Up To $500 Million In Stock To Buy More Bitcoin 4

The company still intends to keep Bitcoin over the long term, according to incoming CEO Phong Le. The remarks were made as MicroStrategy disclosed impairment costs of over $900 million as a result of the wider crypto market upheaval and the sharp decline in Bitcoin’s price.

“We have not set any specific target for the amount of bitcoin we seek to hold, and we will continue to monitor market conditions in determining whether to engage in additional financings to purchase additional Bitcoin,” said the business strategy portion of the filing.

BTC was trading up 10%, above $21,000, at the time of writing.

BTC daily chart. Source: CoinCu

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.