MicroStrategy is thinking about selling stock to increase its Bitcoin holdings.
In a document filed with the SEC, MicroStrategy revealed that it contemplates raising USD $500 million in the sale of shares to continue buying Bitcoin, measure that reinforces its plans to add more reserves in the digital currency.
- MicroStrategy contemplate buying more BTC
- For this, it will sell shares and raise USD $500 million
- The company will remain firm in its plan to add more BTC to your reservations
The business software developer and asset manager, MicroStrategy, he apparently plans to raise more capital through the sale of shares to continue buying and adding Bitcoin to his reserves.
MicroStrategy will continue to buy more Bitcoin
The information was reflected in a presentation introduced today before the US Securities and Exchange Commission (SEC)in which he revealed that he contemplates selling some USD $500 million in shares, which will be destined for “general corporate purposes, including Bitcoin acquisition.”
For some analysts, the fact constitutes a firm declaration of intentions by the company regarding the investment strategy focused on Bitcoin, since until a few months ago it was thought that this mainly responded to the interests and perspectives of Michael Saylor, former CEO of MicroStrategy.
Let’s keep in mind that Saylor left his position as CEO of the company to become executive chairman of the company. As he stated he, in this position he could concentrate more on buying BTC for MicroStrategy, reiterating that it trusts in this plan to make the entity one of the most representative in the sector, thinking in the long term.
An ambitious strategy
It is worth noting that since last 2020, MicroStrategy has been raising capital through various means to invest in Bitcoin, gathering to date more than 130,000 BTC in its reserves, currently valued at more than $2 billion at current unit prices.
Although this is an ambitious strategy, it has also represented risks for the company given the volatility and drop in the price of the digital currency. The calculations presented so far this year reflect that MicroStrategy recorded losses of USD $1.2 billion due to its BTC holdings, which has also affected the value of its shares.
After the increase recorded by Bitcoin this September 9, the actions of MicroStrategy increased by 12%, but due to the publication of its last report before the SEC, this fell by 1.5% due to the possibility that its value could be diluted by the contemplated sales.
Article elaborated by Angel Di Matteo / DailyBitcoin
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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.