Microstrategy Inc. is selling up to $1 billion of its common stock, MSTR, with the aim of using some of the net proceeds to purchase bitcoin. The Nasdaq-listed company recently completed an offering of $500 million in secure notes and will use the proceeds to acquire bitcoin.
Selling MSTR Stock to Buy Bitcoin
Microstrategy Inc. is near filed The company announced Monday that a registration statement with the U.S. Securities and Exchange Commission (SEC) offers to sell up to $1 billion of its Class A common stock for the flexibility to launch securities “on the market.” The company’s Class A common stock is listed on the Nasdaq Global Select Market under the symbol MSTR.
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In the prospectus filed with the SEC for this offering, Microstrategy explained how it plans to use the sale proceeds, stating:
We intend to use the net proceeds from the sale of any class of 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 there are approximately 92,079 bitcoins held by a newly formed subsidiary, Macrostrategy LLC.
The company also announced on Monday that it has completed a $500 million offer of 6.125%. senior safe notes And the proceeds will be used to buy more bitcoins. At the current price, the total revenue from this offer is 12,500. can happen till B T c. This will increase Microstrategy’s total bitcoin holdings to over 100,000 B T c.
The company’s prospectus filed with the SEC states:
Microstrategy follows two corporate strategies in conducting its business. One strategy is to acquire and hold bitcoin and the other strategy is to grow our enterprise analytics software business.
“We view our bitcoin holdings as long-term holdings, and we do not plan to engage in regular trading of bitcoin and have not entered into hedging or otherwise derivative contracts in relation to our bitcoin holdings, although we do not plan to enter into derivative contracts in the future. Can sell bitcoin over the period. There is a need to generate cash for Treasury management and other general corporate purposes,” the company elaborated.
Microstrategy further said, “We are exploring opportunities to apply bitcoin-related technologies such as blockchain analytics to our software offerings.”
What do you think about Microstrategy selling MSTR shares to buy bitcoin? Let us know in the comments section below.
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