MicroStrategy issues up to $1B of common stock to buy more bitcoins

MicroStrategy is back. Freshly baked The leading business analytics company sold $500 million worth of private placement notes in its securities offering this week and is looking for more.

Stock offering

MicroStrategy is rapidly approaching BTC worth 100,000 in the company’s Bitcoin holding subsidiary MacroStrategy LLC. The company’s recent common stock issuance suggests that they may hope to break the 100,000-share threshold as soon as possible.

Documents filed with the U.S. Securities and Exchange Commission this week Over time, MicroStrategy will be able to sell Class A common stock $MSTR worth up to $1B; in the US Securities and Exchange Commission’s prospectus, the company stated that they “intend to use any Class A shares provided in this prospectus. The net proceeds from the sale of common shares are used for general corporate purposes, including the acquisition of Bitcoin, unless otherwise stated in the applicable prospectus supplement.”

Of course, with more than 92K BTC in the newly established subsidiary account, MicroStrategy may have exceeded the 100K mark even through the recent bond issuance. According to current pricing, the company can use the funds raised from the sale of senior secured notes to obtain more than 10,000 bitcoins, which makes the common stock announcement just to add to the MacroStrategy BTC holdings. Even in terms of the company’s current figures, in terms of BTC holdings, they are definitely the leaders of the company, and their BTC on hand is more than twice that of Tesla.

Related Reading | MicroStrategy discloses a $15 million bitcoin purchase transaction

More from the file

The SEC’s documents shared some of the company’s macro views: “We treat the bitcoins we hold as long-term holdings. We do not intend to conduct regular bitcoin transactions, nor do we hedge or sign derivative contracts in other ways to hold us. Bitcoin, although we may sell Bitcoin as needed in the future to generate cash for fund management and other general corporate purposes”.

In addition, the company stated in the document that they are “exploring opportunities for applying blockchain analysis and other Bitcoin-related technologies to our software products.” So far, the company has regarded its business as a two-pronged business, namely the development of its enterprise analytics software business and the acquisition and holding of Bitcoin.

MicroStrategy stock has responded positively to the recent financing, and the company’s sentiment is focused on buying more bitcoin. An analyst Rack Davis joked on Twitter that he was surprised that there was still any furniture in the MicroStrategy office-“You can sell it all and buy Bitcoin!”, he said. MicroStrategy CEO Michael Saylor responded to this tweet with emojis of impatience and thinking.

Despite a wild ride this year for MicroStrategy $MSTR, the recent SEC filings seem to have resulted in positive investor feedback.| Source: $MSTR-NASDAQ on TradingView.com

Related Reading | MicroStrategy received more than US$1.5B of US$500 million bill orders to fund Bitcoin purchases

Featured image from Pixabay, Charts from TradingView.com

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