The same day business intelligence firm Microstrategy announced that it would use $488 million from the sale of a private offering to buy bitcoin, the company said it could sell up to $1 billion of its stock for the same reason.
In a Monday S-3 filing to the US Securities and Exchange Commission, MicroStrategy said It will begin an “in-market” securities offering that will allow it to sell up to $1 billion of its Class A common stock over time. The firm said it aims to use the proceeds from the offering “for general corporate purposes, including the acquisition of bitcoin”.
“Bitcoin does not pay interest or other returns and therefore the ability to generate a return on investment from the net proceeds from this offering will depend on whether the value of bitcoin has increased since our purchase of bitcoin from this offering. net income,” the filing said. “Bitcoins purchased with net proceeds from this offering may be converted into cash with a value substantially less than the net proceeds from this offering as a result of future fluctuations in bitcoin trading prices.”
According to an SEC filing, MicroStrategy has collected 92,079 bitcoin (B T c) – approximately $3.7 billion at the time of publication – as of June 4, the company said today that it intends to purchase an additional $488 million in cryptocurrency. Filing Reflects MicroStrategy bought its existing holdings At an average BTC price of $24,450, which means the company has seen the value of its cryptos increase by about $1.5 billion.
Should the firm use the entire proceeds of $1 billion to reinvest in bitcoin, it would add about 25,000 coins to its coffers at its current value of $40,150. crypto asset price an increase of over 8.8% in the last 24 hours.