Nasdaq-listed business intelligence and software firm, MicroStrategy Incorporated said it would sell up to $500 million in Class A stock to buy more bitcoin, according to a filing with the U.S. Securities and Exchange Commission (SEC) on Friday, Bloomberg reported.
MicroStrategy sells 500 million shares to buy more bitcoin
MicroStrategy announced that it will enter into a sale agreement through Cowen and Company, LLC and BTIG, LLC to sell up to $500 million of Class A common stock and intends to retain all future proceeds, if any, to purchase additional Bitcoin and Grow a software business.
The stock offering will be used for “general corporate purposes, including the purchase of bitcoin,” the filing said.
In August, Michael Saylor, the CEO of MicroStrategy corporation and one of the biggest Bitcoin advocates, handed over his CEO role to his deputy personnel.
Saylor will now serve as executive chairman, with plans to put his focus exclusively on hoarding cryptocurrencies.
MicroStrategy is no stranger to betting on Bitcoin, especially at a time when prices are generally lower. Over the next few years, the business intelligence, software, and cloud computing company is hoping for a huge cash-out from the inevitable price hikes, as its demand will outstrip supply over the next decade.
The publicly traded company’s board approved bitcoin as its primary reserve asset, not only believing bitcoin to be a viable alternative to fiat but has been making targeted and ambitious acquisitions,
Not minding the losses accrued thus far, MicroStrategy Incorporated has continued to buy the dip, the latest of which is 480 units of Bitcoin (BTC) worth approximately $10 million on June 30.