Michael Saylor and his MicroStrategy are as bullish on Bitcoin as can possibly be. After the company has sold over $500 million worth of privately offered notes in a securities offering this week, the business intelligence firm is looking to increase liquidity to buy more Bitcoin.
A recent common stock offering for MicroStrategy suggests that the company might be exceeding the 100K Bitcoin threshold pretty soon.
MicroStrategy have submitted a filing with the SEC in which it discloses to sell up to $1 billion worth of their class A common stock $MSTR over time. According to the filing, the company would like to acquire more Bitcoin with the proceeds:
“[We] intend to use the net proceeds from the sale of any class A common stock offered under this prospectus for general corporate purposes, including the acquisition of bitcoin, unless otherwise indicated in the applicable prospectus supplement.”
Michael Saylor, MicroStragy’s Chief Executive Officer, appeared on CNBC’s Fast Money on Tuesday to comment on the firm’s plans.
— CNBC's Fast Money (@CNBCFastMoney) June 15, 2021
MicroStrategy already holds over 92K Bitcoin and could already secure over 10K Bitcoin with the recently raised $500 million at current market pricing. Thereby surpassing the 100K. MicroStrategy is currently the largest corporation that holds Bitcoin on its balance sheet. Tesla currently holds half as much as MicroStrategy.
MicroStrategy’s future plans
In the SEC filing, MicroStrategy unveils a bit of its broader perspective:
“We view our bitcoin holdings as long-term holdings, and we do not plan to engage in regular trading of bitcoin and have not hedged or otherwise entered into derivative contracts with respect to our bitcoin holdings, though we may sell bitcoin in future periods as needed to generate cash for treasury management and other general corporate purposes”.
The business analytics firm also stated that they are “exploring opportunities to apply bitcoin-related technologies such as blockchain analytics into our software offerings”.
To-date, MicroStrategy’s strategy of raising shareholder value has been two-fold. On the one hand they aim to continue to grow their enterprise analytics software business. On the other hand, the acquisition of Bitcoin brings some significant value.
MicroStrategy’s stock has responded well to recent developments. $MSTR has been up almost 35% in the last five days.
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