Already holding more than 129,000 BTC in its coffers, MicroStrategy wants to buy more Bitcoin. The publicly traded software company is already the single largest corporate holder of the world’s topmost cryptocurrency.
MicroStrategy in a filing with the SEC on Friday said it has entered an agreement with Cowne & Co., an investment bank, to sell up to $500 million in shares of its Class A common stock. The company may use the net proceeds from this offering to purchase additional Bitcoin. MicroStrategy has also warned of Bitcoin’s volatility and wild price swings. It highlighted future fluctuations in Bitcoin trading prices may result in MicroStrategy converting Bitcoin purchased with the net proceeds from this offering into cash with a value substantially below the net proceeds from the offering.
The company under the leadership of Michael Saylor accrued a sizeable Bitcoin treasury of 129,699 BTC which is today worth over $2.7 billion. MicroStrategy intends to hold this for the long term. Last month, the company reported a non-cash digital impairment charge of $917.8 million in the second quarter of 2022. It was the same month Saylor stepped down as MicroStrategy’s CEO and stepped into the shoes of the executive chairman.
MicroStrategy, in its latest filing, stated that it has no plans to engage in trading or enter into derivative contracts with its Bitcoin holding. However, it may sell BTC as needed to generate cash for treasury management and other general corporate purposes. MicroStrategy has not targeted any specific amount of Bitcoin holdings. It will monitor market conditions in determining whether to conduct debt or equity financings to buy additional Bitcoin.