MicroStrategy plans to use $1.5 billion raised in the stock issuance to buy Bitcoin.
In its S-3 filing with the U.S. Securities and Exchange Commission recently, MicroStrategy will launch an equity offering that will allow the sale of up to $1 billion in Class A common stock.
The company intends to use the proceeds from the issuance “for general corporate purposes, including the acquisition of Bitcoin.”
The news comes hours after founder Michael Saylor announced on Twitter that MicroStrategy “intended to use the proceeds to accumulate more Bitcoin.”
MicroStrategy Completes $500 Million Offering of 6.125% Senior Secured Notes Due 2028 with #Bitcoin Use of Proceeds. @MicroStrategy‘s existing approximately 92.079 bitcoins are being held by a newly formed subsidiary, MacroStrategy LLC. $MSTRhttps://t.co/avdKhHDLMH
— Michael Saylor (@michael_saylor) June 14, 2021
According to SEC filings, MicroStrategy currently holds 92,079 Bitcoins, currently worth about $3.7 billion.
Records show that MicroStrategy bought those Bitcoins at an average price of $24,450.
If the entire $1 billion raised were used to invest in Bitcoin (not counting the nearly $500 million in the previous announcement), the company would add around 25,000 BTC to its inventory at the current price of 40,549. USD/BTC.
Bitcoin price has increased by almost 5% in the past 24 hours.
Maybe you are interested:
- Kucoin Will List Multiverse’s AI Token
- The female president of Tanzania calls for the use of cryptocurrencies
- ‘Netherlands must ban Bitcoin now’