Microstrategy's $750M Stock Sale For Bitcoin Purchase
(MENAFN- CoinXposure)
MicroStrategy announced on August 1 in a filing with the securities and exchange commission that it has entered into a sales agreement with Cowen and Company, Canaccord Genuity, and Berenberg Capital for the sale of its class A common stock.
MicroStrategy stated that the sale proceeds could be used for a variety of corporate purposes, including the purchase of additional bitcoin and working capital.
MicroStrategy, a software development company based in the United States, plans to raise $750 million through a stock sale and may use the proceeds to purchase additional bitcoin .
“As with prior programs, we may use the proceeds for general corporate purposes, which may include the purchase of Bitcoin as well as the repurchase or repayment of our outstanding debt,” MicroStrategy Chief Financial Officer Andrew Kang said during the company's second-quarter earnings call.
The company founded by Michael Saylor currently possesses 152,800 bitcoins, which are worth $4.5 billion at current prices.
The company added 12,333 bitcoins during the second quarter and 467 more in July. MicroStrategy Chairman Michael Saylor told investors on August 1.
“Our objective is to find ways to generate incremental Bitcoin for our shareholders using either cash flow from the business or intelligent accretive financings of equity, debt, or other intelligent operations.”
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Immediately following the announcement, the price of Bitcoin increased by nearly 2%, from $29,200 to $29,776 at the time of writing.
Since the beginning of this year, microstrategy's stock price has increased by nearly 200 percent due to the ongoing Bitcoin rally.
According to Google Finance, MSTR shares increased from $145.02 per share on January 3 to $434.98 at the time of publication.
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