MicroStrategy to Sell $1B in Stock to Buy Bitcoin From the Proceedings

​MicroStrategy, the enterprise analytics software company run by Michael Saylor as CEO, reportedly plans to release additional shares to potentially finance more BTC purchases. As per a U.S. Securities and Exchange Commission (SEC) filing, the company, led by the well-known CEO, reports it will issue and sell class A common stock to get up to $1 billion from ‘time to time,’ using Jefferies, the investment bank as its agent.

MicroStrategy further states that the proceeds from the equity sale will be put towards buying Bitcoin and also be used for other purposes.

The statement says: “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.”

Key Background

The enterprise analytics software company currently has around 92,079 BTC. According to the SEC filing, the firm says that purchasing and holding Bitcoin is part of its business model.

“MicroStrategy pursues two corporate strategies in the operation of its business. One strategy is to acquire and hold Bitcoin, and the other strategy is to grow our enterprise analytics software business. In the first quarter of 2021, we determined to pursue, as part of our overall corporate strategy, a strategy of acquiring Bitcoin with our liquid assets that exceed working capital requirements, 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,” the filing reads.

As per MicroStrategy, the publicity created by its BTC purchases also serves as a probably marketing chance: “We believe that our Bitcoin and related activities in support of the Bitcoin network enhance awareness of our brand and can provide opportunities to secure new customers for our analytics offerings.”

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