The Ambitious Bitcoin Plans of MicroStrategy: A $750 Million Stock Sale
In recent years, MicroStrategy, the American software company, has made a significant impact in the Bitcoin (BTC) ecosystem. Since its entry into the world of Bitcoin in 2020, it has become the largest publicly traded BTC holder. However, the business intelligence company is far from satisfied with its current bitcoin fortune and aims to raise up to $750 million through a stock sale to further expand its holdings.
The $750 Million Stock Sale Announcement
On August 1st, MicroStrategy filed an application with the Securities and Exchange Commission (SEC), revealing that it had entered into a sale agreement with three companies – Cowen & Company, Canaccord Genuity, and Berenberg Capital – for the sale of its class A common stock.
Purpose of the Stock Sale
MicroStrategy stated that the proceeds from the planned sale could be used for various general corporate purposes, including the acquisition of more BTC and working capital.
Profitability and Financial Performance
In addition to the stock sale, MicroStrategy reported a net income of $22.2 million for the second quarter of the year. In the same period last year, it had incurred a loss of nearly $1.1 billion. The company indicated that it had an impairment loss of $24.1 million during the past quarter. Compared to the second quarter of 2020, this accounting loss was significantly lower at $917.8 million.
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The total quarterly revenue remained stable at $120.4 million compared to the previous year.
MicroStrategy’s Bitcoin Holdings
In late June, it was announced that MicroStrategy had made its largest Bitcoin purchase in two years. A total of 12,333 BTC was added to its already substantial Bitcoin holdings. The massive purchase amounted to $347 million at an average BTC price of $28,136.
In July, the publicly traded company further expanded its Bitcoin holdings. With an investment of $14.4 million, it acquired an additional 467 BTC. In total, the company now possesses 152,800 BTC, which, at the current Bitcoin price, is valued at over $4.5 billion.
MicroStrategy’s ambitious plans to raise $750 million through a stock sale showcase its strong commitment to Bitcoin and its role as a major BTC holder. As the company continues to expand its Bitcoin holdings, it solidifies its position as a prominent player in the Bitcoin ecosystem.