Publicly listed software developer MicroStrategy MSTR is one of the largest institutional buyers of Bitcoin BTC/USD, with over 129,000 BTC in its vault. The company plans to add more BTC to its coffers by selling its Class A common stock.
According to a Filing with the SECMicroStrategy has reached an agreement with two companies, Cowen and Company and BTIG, to sell up to 11,474,290 shares worth approximately $500 million.
“We intend to use the net proceeds from this offering for general corporate purposes, including acquiring bitcoin,” the company said in the prospectus. “Future fluctuations in Bitcoin trading prices may cause Bitcoin purchased with the net proceeds of this cash offer to be converted to be worth significantly less than the net proceeds of this offer.”
Michael Saylor, founder of Microstrategy, has always been a strong supporter of Bitcoin. He recently stepped down as CEO of the company to take on the role of executive chairman and focus on acquiring Bitcoin.
“I will remain a senior company executive and chairman of the board, in addition to chairing the investment committee and leading our bitcoin acquisition strategy,” Saylor had said during the company’s call to the meeting. second trimester.
Since 2020, MicroStrategy has acquired over 129,000 Bitcoin worth approximately $2.5 billion by raising funds through bond and equity offerings. However, the company is currently incurring a loss of nearly $1 billion due to falling prices, according to data from BitcoinTreasuries.
Due to the breadth of large holdings, the company’s stock price began to mimic the price of BTC, so much so that its share rose nearly 12% on Friday when BTC jumped around 10%. %.