MicroStrategy announced that it will sell $ 1 billion worth of shares to use the proceeds for general corporate purposes, including additional purchases of Bitcoin.
The company announced it would use $ 488 million from the proceeds of a private offering to buy Bitcoin. It said it could sell up to $ 1 billion of its shares for the same reason.
The company filed an S-3 filing with the SEC on Monday. In it, MicroStrategy wrote that it would launch a securities offering that would enable it to sell up to 1 billion of its Class A common shares over time. The proceeds are to be used for general corporate purposes, including the acquisition of Bitcoin.
The registration says:
“Bitcoin pays no interest or other returns and therefore the ability to generate a return on the net proceeds from this offering depends on whether the value of Bitcoin increases with the net proceeds from this offering after our purchases of bitcoin.”
“Future fluctuations in Bitcoin trading prices may result in us converting Bitcoin that was purchased with the net proceeds from this offer into cash with a value that is well below the net proceeds from this offer.”
As can also be seen from the registration, the company holds 92,079 Bitcoin (BTC). The company also announced it would buy an additional $ 488 million in bitcoin. As can also be seen, MicroStrategy bought BTC at an average price of $ 24,450, meaning the investment has increased in value by nearly $ 1.5 billion.
If MicroStrategy buys an additional $ 1 billion in Bitcoin, it would add another 25,000 Bitcoin.
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