MicroStrategy Is Willing to Sell $500 Million Worth of Stock to Fund Its Bitcoin Purchases

12. Sep 2022 Posted by Akolkar B on News

Michael Saylor’s business intelligence firm MicroStrategy is making fresh moves to make more Bitcoin purchases. As per the latest details, the company has filed with the U.S. Securities and Exchange Commission (SEC) for a stock sale with $500 million to raise more funds to buy Bitcoin.

MicroStrategy is one of the biggest corporate holders of Bitcoin to date. According to the filing last Friday, September 9, MicroStrategy shall be selling its Class A shares through Cowen & Co. and BTIG LLC. However, no specific date has been provided for potential sales.

In the filing, MicroStrategy noted that it intends to retain its full-time earnings to purchase additional Bitcoins. The recent timing of the SEC filing is of prime importance considering that Michael Saylor stepped down from the CEO position last month. He is now the executive chairman of MicroStrategy and will focus full-time on buying Bitcoins.

Since 2020, the company has been aggressively buying Bitcoins at several instances and so far it has currently purchased more than 130,000 Bitcoin worth more than $2 billion.

Since MicroStrategy has been the largest corporate holder of Bitcoins, the company’s stock has also been largely tethered to BTC. Along with Bitcoin, the MSTR stock has seen a severe correction over the last year.

Michael Saylor has been a huge fan of bitcoin and is also keenly working on fresh developments within the Bitcoin ecosystem. He’s also an ardent supporter of the Lightning solution, Bitcoin’s Layer-2 scalability solution.

During his recent talk, Saylor said that the Lightning Network could bring Bitcoin adoption to billions of people across the globe. “The advantage of Lightning is not just that you could scale up bitcoin for billions of people, or drive the transaction cost to nearly nothing, but also, the ethos of bitcoin is to go very carefully and not move fast on the base layer without the universal consensus, but in Lightning, you can move much more aggressively developing functionality and take more risks with the applications than you can with the underlying bitcoin layer,” he said.

The Bitcoin price is showing signs of strong recovery over the weekend. As of press time, Bitcoin is trading 2% up at a price of $21,632 and a market cap of $414 billion.