Microstrategy Inc. sells up to $ 1 billion of its common stock, MSTR, with the goal of using some of the net proceeds to buy bitcoin. The Nasdaq-listed company has also recently completed 500 million U.S. securities notes and will use the proceeds to acquire bitcoins.
Selling MSTR Shares to Buy Bitcoin
Microstrategy Inc. has archived a filing statement with the U.S. Securities and Exchange Commission (SEC) to launch a “market-based” tender for flexibility to sell up to $ 1 billion of Class A common stock over time, ”the company announced Monday. A of the company is listed on the Nasdaq Global Selected Market under the symbol MSTR.
MicroStrategy launches “On the market” securities offerings for flexibility to sell up to $ 1 billion of Class A common stock over time $ MSTRhttps://t.co/qouK8pFmBF
– Michael Saylor (@michael_saylor) June 14, 2021
In the prospectus submitted to the SEC for this offer, Microstrategy explained how it plans to use the proceeds of the sale, stating:
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.
Microstrategy Inc. currently hosts about 92,079 bitcoins owned by a newly formed subsidiary, Macrostrategy LLC.
The company also announced Monday that it has completed a $ 500 million offer of 6.125% senior security tickets and the proceeds will be used to buy more coins. At the current price, the gross revenue from this offer could bring in as much as $ 12,500 BTC. This would raise Microstrategy’s total bitcoin holdings to more than 100,000 BTC.
The company’s prospectus filed with the SEC describes:
Microstrategy deals with 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 corporate analytics program.
“We view our bitcoin holdings as long-term holdings, and we do not plan to engage in regular bitcoin trading and have not covered or otherwise signed derivative contracts regarding our bitcoin holdings, although we may sell bitcoin in future periods as necessary to generate cash for treasury management and other general corporate goals, ”the company detailed.
Microstrategy further noted, “We are also exploring opportunities to apply bitcoin-related technologies such as blockchain in our software offerings.”
What do you think of Microstrategy selling MSTR shares to buy bitcoin? Let us know in the comments section below.
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