Microstrategy Plans to Raise a Billion Dollars to Buy More Bitcoin Despite Critics
Having secured the purchase of more than 92,000 Bitcoins already, Michael Saylor’s Microstrategy has revealed plans to raise $1 billion USD to purchase even more BTCs.
Bitcoin is Microstrategy’s Strategy
On the same day Microstrategy announced a completed sale of $500 million worth in bonds, the business intelligence software firm also made public its intention to increase its current Bitcoin holdings by selling up to $1 billion in stock.
According to a recent U.S. Securities and Exchange Commission (SEC) filing, Microstrategy reveals it will issue and sell class A common stock in the near future to raise up to one billion dollars in the purchase of Bitcoin amidst other interests.
“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.”
The SEC revelation comes only four days after the company raised $500 million in bond sales to buy thousands of bitcoins in addition to its impressive BTC bank already. As Microstrategy is the first publicly traded company to place such significant investments in the crypto market, its latest backing comes as no surprise. Or perhaps a lesser surprise, especially considering it moved to purchase more cryptocurrencies right after the 24 hour market crash which occurred a few weeks ago.
According to the filing, Michael Saylor’s firm sees Bitcoin as a major component to the company’s growth.
“In the first quarter of 2021, we are determined to pursue as part of our overall corporate strategy, a strategy of acquiring Bitcoin with our liquid assets...and from time to time, subject to market conditions, issuing debt or equity securities in capital raising transactions with the objective of using the proceeds to purchase Bitcoin.”
CEO Michael Saylor has stated that he sees a bright future for a range of cryptocurrencies. Over the past year he has managed to significantly raise the firm's public profile by heavily committing to the world's biggest cryptocurrency. Saylor and his company of course are not without their critics, but this does not change the positive effect that Microstrategy’s love affair with Bitcoin has had on its growing profile.
Last August, the company bought its first Bitcoins – 21,454 BTCs in all. Since then, the number has more than quadrupled, and so has the profit. Worth about $250 million at first purchase, Microstrategy’s total stash of Bitcoin, estimated to be about 92,000 Bitcoins, is currently worth about $3.6 billion. If its planned capital raise goes through, Microstrategy's Bitcoin holdings might eclipse $6 billion.
Asides its growing profile and brand, Microstrategy hopes its Bitcoin strategy can expose the company to more customers and create more brand awareness.
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