MicroStrategy is back at it again. fresh off the heels In order to sell $500M worth of privately offered notes in securities offered this week, the leading business analysis firm is looking for more.
MicroStrategy is rapidly approaching 100K worth of BTC in the firm’s bitcoin-holding subsidiary, MacroStrategy LLC. The recent common stock offering for the company suggests that they may be looking to cross the 100K threshold sooner rather than later.
This week’s SEC filings will enable MicroStrategy to sell up to $1B worth of its Class A common stock $MSTR over time; In the SEC prospectus, the firm stated that they “intend to use the net proceeds from the sale of any class, including the acquisition of bitcoin, common stock offered under this prospectus for general corporate purposes, as long as the applicable prospectus.” not otherwise indicated in the supplement.”
Of course, with more than 92K BTC in the account of the newly formed subsidiary, MicroStrategy may already cross the 100K mark with its recent bond offering. At current pricing, the company can secure 10K bitcoins with funds raised from the sale of senior secured notes, making MacroStrategy’s announcement of common stock for BTC Holdings just icing on the cake. Even with the firm’s current numbers alone, when it comes to BTC holdings, they are far from the corporate leader with more than twice as much BTC as Tesla.
Related Reading | MicroStrategy Unveils $15M Bitcoin Purchase
The SEC filing shares a bit of a macro perspective for the firm: “We view our bitcoin holdings as long-term holdings, and we do not plan to engage in regular trading of bitcoin and do not hedge or otherwise. We do not enter into derivative contracts with respect to our bitcoin holdings, however we may sell bitcoins in future periods to generate cash for treasury management and other general corporate purposes.
Additionally, the firm said in the filing that they are “exploring opportunities to implement bitcoin-related technologies such as blockchain analytics into our software offerings”. The company has seen its operations to date as a two-pronged business, growing its enterprise analytics software business and acquiring bitcoin.
Microstrategy stock has responded positively to the recent fundraising and the firm’s sentiment is focused on buying more bitcoin. One analyst, Lark Davies, joked on Twitter that he wondered if any furniture lived in MicroStrategy offices – “just sell it all and buy bitcoin!”, he said. MicroStrategy CEO Michael Sayer replied to the tweet with a thought-provoking and thoughtful face emoji.
Despite a wild ride this year for MicroStrategy $MSTR, the recent SEC filings seem to have resulted in positive investor feedback.| Source: $MSTR-NASDAQ on TradingView.com
Related Reading | MicroStrategy Receives Over $1.5B Order for $500M Notes to Buy Bitcoin
Featured image from Pixabay, Charts from TradingView.com