U.S. business intelligence firm MicroStrategy revealed plans to sell it Class A common stock for as much as $1 billion, with part of the proceeds possibly used for making more bitcoin purchases.
Another Major Bitcoin Purchase?
In a document filed with the U.S. Securities and Exchange Commission on Monday (June 14, 2021), MicroStrategy stated that it would launch an “at the market” offering, which would enable the company to sell its Class A common stock for up to $1 billion over time. According to the Form S-3 filing, proceeds from the sale could be used for different reasons, including buying more bitcoin.
An excerpt from the document reads:
“We intend to use the net proceeds from the sale of any class A common stock offered under this prospectus 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.”
Meanwhile, the latest development comes hours after MicroStrategy completed the offering of senior secured notes. As reported by CryptoPotato, the debt offering raised $500 million, with the company stating that the funds will be channeled towards more bitcoin purchases.
As stated in the document, MicroStrategy said the firm held 92,079 BTC, worth $3.7 billion at the time of writing, as of June 4, 2021. The bitcoins were acquired at an average price of $24,450, with the company saying that there were plans to buy more. MicroStrategy earlier announced the formation of a new subsidiary called MacroStrategy LLC, which holds all the bitcoins.
MicroStrategy is a Bitcoin HODLER
MicroStrategy’s CEO, Michael Saylor, is a known vocal bitcoin proponent. He revealed earlier in June that he started acquiring BTC back in June 2020 after discovering that owning stock of big tech companies was not working.
Meanwhile, MicroStrategy made its first bitcoin purchase last August and has since been increasing its BTC portfolio. According to the SEC filing, the firm said that it had no plans to conduct bitcoin trading but hold the asset long-term.
“We view our bitcoin holdings as long-term holdings, and we do not plan to engage in regular trading of bitcoin and have not hedged or otherwise entered into derivative contracts with respect to our bitcoin holdings, though we may sell bitcoin in future periods as needed to generate cash for treasury management and other general corporate purposes.”