MicroStrategy Plans to Buy More Bitcoin, Files to Sell Up to $500M of Stock

cryptonews.com:

MicroStrategy is one of the largest institutional investors in Bitcoin. The chairman of the software developer company, Michael Saylor, is a Bitcoin maximalist and has vowed not to sell the company’s Bitcoin holdings despite the notable decline in Bitcoin prices. Bitcoin has lost around two-thirds of its value since reaching an all-time high in November last year.

On Friday, MicroStrategy made a filing with the US Securities and Exchange Commission (SEC). In the filing, MicroStrategy revealed plans to sell up to $500 million of stock to support its cryptocurrency purchases.

In the filing, MicroStrategy reveals that the stock offering would be used for “general corporate purposes, including the acquisition of Bitcoin.” The filing is a positive sign for the Bitcoin community that MicroStrategy is not giving up on its Bitcoin acquisition strategy.

Saylor stepped down as CEO a few months ago, and he now serves as the executive chairman of MicroStrategy. Since stepping down, the software company has not made any new Bitcoin purchases.

MicroStrategy has been on a Bitcoin buying spree since 2020 to become a crypto proxy. Since 2020, the company has been using the funds raised from stock and bond offerings to buy around 130,000 Bitcoin, valued at over $2 billion.

Following the company’s extensive Bitcoin holdings, its stock performs in a manner that reflects Bitcoin price movements. This year, Bitcoin has not performed well, and MicroStrategy has suffered a $1.2 billion loss on its holdings. The declining Bitcoin prices have affected MSTR shares.

The shares made double-digit gains on Friday as Bitcoin recovered by around 10%. However, the after-trading hours show a 1.5% decline after news of this stock offer became public. The stock