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MicroStrategy Considers Stock Sales to Buy Bitcoin

Overview:

  • Software Maker MicroStrategy Considers Selling Off Shares to Buy Bitcoin
  • On the same day, the company announced that it would buy BTC worth $ 488 million
  • The money for the purchase comes from the proceeds of a private offering, the company announced

Software company MicroStrategy is reeling after the recent announcement that it will invest $ 488 million in Bitcoin from the proceeds of a private offering.

The software maker is considering selling shares worth up to $ 1 billion to buy more units of BTC with the same money. MicroStrategy is at the forefront of institutional investors with its crypto investments.

MicroStrategy Continues to Hold On to Bitcoin Strategy

On Monday, the American software company filed an application with the Securities and Exchange Commission (SEC). In the S-3 filing, MicroStrategy announced that they will launch “at the market”securities offerings that will allow up to $ 1 billion of Class A common stock to be sold. The capital gained in this way is then to be reallocated into Bitcoin.

“Bitcoin does not pay interest or other returns, so the ability to generate a return from the net proceeds from this offering will depend on whether there is an increase in the value of Bitcoin after our purchases of Bitcoin with the net proceeds from this offering,” the company explained in its application to the SEC. It continues: “Future fluctuations in Bitcoin trading prices may cause us to convert Bitcoin that we purchased with the net proceeds from this offering into cash that is well below the net proceeds from this offering.“

MicroStrategy expands its place at the top of the institutions
MicroStrategy expands its place at the top of institutions – Source BitcoinTreasuries

With the new Bitcoin acquisitions, the company continues to expand its place at the forefront of crypto institutions. With the added shares of BTC, the total value of Bitcoin in the software manufacturer’s portfolio could reach the $ 4 billion mark.

According to data from BitcoinTreasuries, the company currently owns 92,079 BTC, which at the current rate is worth about $ 3.7 billion.

The S-3 filing shows that MicroStrategy bought its existing Bitcoin holdings at an average price of $ 24,450. If you now look at the BTC development, it can be seen that the company can record about 1.5 billion US dollars in value increase.

Bitcoin price rises slightly after recent correction

The Bitcoin price was able to make almost 9 percent good in the last 24 hours. At the current price of just over $ 40,000, software maker MicroStrategy would add nearly 25,000 BTC to the portfolio when using all proceeds from the stock sales.

Bitcoin recovers only slightly after correction
Bitcoin recovers Only Slightly after Correction – Source CoinMarketCap

The good news about the backing of the strongest institution in the market is likely to drive prices a bit at the moment. After the recent correction, investors can take a little breather.

Where the journey for the popular Ur-Coin goes in the near future remains to be seen. The hoped-for course records in May, exactly one year after the last halving event, did not materialize. For many investors who relied on the statistics, a big nuisance.

Conclusion: MicroStrategy Continues to stand behind Bitcoin and Crypto

The fact that a top institution like MicroStrategy does not turn its back on the market even in times of crisis is an absolutely positive sign. The upcoming investments will bring Bitcoin the recovery that the coin definitely needs from an investor’s point of view.

Even despite the current rather sober developments, cryptocurrencies are still in the hype. More and more people want to buy coins like Ethereum or Bitcoin. The ongoing Corona crisis has made it clear how important it is to achieve financial independence. Cryptocurrencies offer a solution to a long-standing problem.

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