Buying Pressure Incoming? MicroStrategy Files Notice With SEC To Sell $750 Million In Stocks
August 02 2023 - 12:00PM
NEWSBTC
In a recent development, MicroStrategy, a US-based software firm,
has announced intentions to raise about $750 million through stock
sales. According to the platform, which is currently one of the
biggest corporate holders of Bitcoin, proceeds realized from the
sale will be used to purchase more Bitcoin. More BTC For
MicroStrategy? In a filing with the United States Securities and
Exchange Commission on August 1, MicroStrategy disclosed that it
has entered into a sales contract with three companies, namely
Canaccord Genuity, Cowen and Company, and Berenberg Capital, with
respect to the sale of MicroStrategy’s class A common stocks.
Related Reading: Here’s The Total Number Of XRP That Ripple
Currently Holds Since MicroStrategy is a publicly traded company,
the sales are expected to be available to the general public and to
take place on the stock market. The firm is guaranteed easy access
to capital since its stock will be offered to every interested
investor. According to MicroStrategy, the proceeds raised
from the proposed sale would be applied to different corporate
objectives, which according to MicroStrategy’s Chief Financial
Officer Andrew Kang, shall include “.. the purchase of Bitcoin as
well as the repurchase or repayment of outstanding debt.” BTC bulls
still holding $29,300 | Source: BTCUSD on Tradingview.com Bitcoin
Price Reaction To The News MicroStrategy is a firm founded by
Micheal Saylor and one of the largest holders of Bitcoin. The firm
presently holds 152,800 Bitcoin valued at $4.5 billion at the
current market price. The firm purchased an additional 12,333
Bitcoin during the second quarter of the year and another 467 in
July. It is currently one of the most prominent champions of
Bitcoin with a bold investment strategy to boost its Bitcoin
holdings regardless of whether or not the market is trending.
Speaking to Investors following the announcement, Chairman and
founder of the firm Micheal Saylor noted that their objective “is
to find ways to generate incremental Bitcoin for our shareholders
and do that with either cash flow from the business or do it
through intelligent accretive financings of equity or debt or other
intelligent operations.” Related Reading: BlackRock CEO Larry
Fink Is The Best Thing To Happen To Bitcoin, Mike Novogratz Says In
reaction to the announcement, the price of Bitcoin rose to about
2%, increasing from $29,200 to $29,771 at the time of writing.
Shareholders in the company also benefited following the ongoing
Bitcoin rally, with shares increasing to nearly 200% since the
beginning of the year. According to data from Google Finance, MSTR
shares have risen from $145.02 per share on January 3 to $434.98 at
the time of publication. Featured image from Bitcoinist,
chart from Tradingview.com
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