MicroStrategy is planning to sell $1 billion in shares to buy bitcoin
Michael Saylor's MicroStrategy plans to sell more than $1 billion in shares. This is with the common shares for including its vast holding in the cryptocurrency. The same is stated in a filing with the Securities and Exchange Commission.
What does it all include?
The S-3 filing for a "shelf offering" on 14th June’21 has come as the business-intelligence software maker completed the sale of $500 million. Along with the high-yield senior secured notes, accessible so it could buy more bitcoin.
It aims to use the earnings for general corporate purposes, along with additional investment in bitcoin. It has not decided how much to put in the direction of any particular purpose.
Under the leadership of CEO Michael Saylor, one of the most vocal bitcoin supporters, MicroStrategy had bought more than 92,000 bitcoins even before these moves. That reserve is now valued at $3.6 billion, making the company the largest corporate holder of the digital asset.
Main Points of the news one must know-
MicroStrategy filed to trade as much as $1 billion in shares on 14th June’21, partially to purchase more bitcoin
Directed by CEO Michael Saylor, it now holds 92,079 bitcoins, now valued at $3.6 billion
The company also believed it has accomplished its $500 million bond sale for its bitcoin strategy
MicroStrategy- the Business Intelligence Firm acquired more than 92,000 BTC-
Under CEO Michael Saylor, is because of offering up to $1 billion of stock to purchase more bitcoin, instantly following a successful $500 million bond sale for the same intention.
According to a list filed with the U.S. Securities and Exchange Commission (SEC), MicroStrategy has come into an agreement with an investment banking company. It is the Jefferies Group to possibly offer up to $1 billion in its Class A common stock and “use the net proceeds from this offering for general corporate purposes, including the acquisition of bitcoin.”
Stating from bitcointreasuries.org, MicroStrategy has the most BTC of any public company in the world. It has more than double as much as Elon Musk’s electric vehicle company Tesla, which holds about 43,000 BTC.
CBW - External Analyst