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In its latest SEC filing, business intelligence software company MicroStrategy has revealed its intention to buy more Bitcoin. bloomberg Reported yesterday. With 129,000 BTC, MicroStrategy is already Bitcoin’s largest corporate shareholder.
MicroStrategy has entered into an agreement to sell its Class A common stock to investment bank Cowen & Co for $500 million, according to a prospectus filed Friday.
Despite the uncertainty and volatility in the Bitcoin market, the company intends to continue pursuing its goal of acquiring more BTC.
Unless otherwise stated in the applicable prospectus supplement, we will use the net proceeds from the sale of Class A common stock provided under this prospectus for general corporate purposes, including the acquisition of bitcoin. intend to do something.”
A specific date for the sale was not provided, but the company also added that it aims to retain future earnings for additional bitcoin purchases or development of its software business.
As Bitcoin Treasuries data recently showed, MicroStrategy’s BTC reserves have dwindled to nearly $2.8 billion. This could be the motivation for the company’s intention to buy the dip.
Bitcoin fell below $20,000 last week after a significant drop from its November 2021 all-time high of $68,789. Further volatility in the Bitcoin price could influence future holding decisions, the company said.
Future volatility in Bitcoin trading prices may result in the conversion of Bitcoin purchased with net proceeds from this offering into cash worth significantly less than net proceeds from this offering.
The company further said it may sell bitcoin to generate cash for “financial management and other general corporate purposes.” However, we do not plan to trade any derivative contracts we hold. The company will continue to monitor market conditions to determine future steps.
In August, MicroStrategy co-founder Michael Saylor stepped down as CEO to focus on advocacy for bitcoin ownership.
