MicroStrategy May Fund Up To $500 Million To Purchase Bitcoin

MicroStrategy May Fund Up To $500 Million To Purchase Bitcoin

Key insights

  • MicroStrategy may sell up to $500 million in class A common stock and purchase more bitcoin

According to a new prospectus filed with the Securities and Exchange Commission (SEC), the company has reached a deal with agents Cowen and Company and BTIG to sell up to $500 million in stock to purchase additional bitcoin.

MicroStrategy filed prospectus
The purpose of the prospectus: "The net proceeds from this transaction will be used for general company objectives, including the purchase of bitcoin."

Under previous CEO and bitcoin bull Michael Saylor, MicroStrategy began adding enormous amounts of bitcoin to its financial sheet. The billionaire left the firm last month, although he still chairs the investment committee. Incoming CEO Phong Le stated that the company still intends to own bitcoin in the long term. At the time of publishing, Bitcoin was trading 10% higher, above $21,000.

BTC / USD 4H chart

The firm's 129,699 bitcoins were bought for nearly $4 billion at the end of June 28, 2022, representing an average cost per bitcoin of around $30,664, according to MicroStrategy. At the current price of bitcoin, about $21,000, the value of their assets is almost $2.7 billion. The total market capitalization of MicroStrategy is around $3.2 billion.

MicroStrategy Bitcoin holdings

To sum up, many public companies have purchased Bitcoin as an investment in their balance sheet could show the interest of these companies in crypto. Also, Tesla accepted Bitcoin as a payment currency but denied it recently cause of Bitcoin mining emissions to the environment. In the long term, many businesses may accept Bitcoin as a payment method, pushing the CBDCs from the Federal Reserve, Bank of England, etc.

Corporate Bitcoin entry value

Source: MicroStrategy, TheBlock and TradingView

Tuyệt vời! Tiếp theo, hãy hoàn tất các thủ tục thanh toán để có thể toàn quyền truy cập vào Holdstation.
Chào mừng trở lại! Bạn đã đăng nhập thành công.
Bạn đã đăng ký thành công Holdstation.
Thành công! Tài khoản của bạn đã được kích hoạt toàn bộ, giờ bạn có thể truy cập vào tất cả nội dung.
Thành công! Thông tin thanh toán của bạn đã được cập nhật.
Thanh toán của bạn chưa được cập nhật.