MicroStrategy (MSTR), a software company that has become a Bitcoin (BTC) corporate vault, intends to sell up to $500 million worth of stock to fund more Bitcoin acquisitions.
A filing with the U.S. Securities and Exchange Commission revealed the stock sale to be used for general corporate goals, including bitcoin acquisition.
MicroStrategy founder Michael Saylor, the resigned as CEO and became CEO of the company to focus on BTC purchases, is not giving up on his grandiose goal of turning the company into a cryptocurrency proxy. Since 2020, he has acquired around 130,000 bitcoins worth more than $2 billion using funds raised from selling stocks and bonds.
*MICROSTRATEGY FILES FOR SALE OF SHARES UP TO $500 MILLION MSTR
MICROSTRATEGY MAY BUY BITCOIN WITH PROCEEDS FROM STOCK SALES
— Stock Market News — Evan (@StockMKTNewz) September 9, 2022
As a result, MicroStrategy stock is now pegged to Bitcoin’s price, resulting in a $1.2 billion loss on the Bitcoin bet given this year’s decline. On Friday, however, shares were up 11% while Bitcoin was up about 10%. The stock fell about 1.5% in after-hours trading following news of the stock offering, which would dilute the value of existing shares.
MicroStrategy (NASDAQ:MSTR) stock price – Source Google
The stock offering is led by Cowen and BTIG, two of the most prominent investment banks covering crypto-related businesses. Recently, the District of Columbia sued Saylor and MicroStrategy for allegedly avoiding taxes on Saylor’s earnings in the district.
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