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- MicroStrategy plans to sell $750 million worth of stock that could likely be used to purchase Bitcoin (BTC).
- The company remains the largest non-crypto firm with BTC holdings in its reserves.
The largest non-crypto-focused and publicly traded company holder of Bitcoin (BTC), MicroStrategy, is still bent on increasing its portfolio for the global leading cryptocurrency. After its latest acquisition of an additional 467 Bitcoin in the past month, Michael Saylor’s MicroStrategy now holds 152,800 BTCs as of Monday, July 31st which is equivalent to $4.5 billion at current market value.
According to a Securities and Exchange Commission (SEC) filing from Tuesday, it is likely that the software developer may secure up to $750 million via the sales of more stock and then transfer the proceeds toward the acquisition of more BTCs, amongst other commitments.
The news triggered the price of Bitcoin to surge slightly from $29,200 to an intra-day high of about $29,800. At the time of this writing, the leading crypto asset is trading at $29,481.76, having moved sideways in the past 24 hours.
The company’s second-quarter financial report was released on Tuesday and it showed that MicroStrategy had an impressive turnover in its financial performance with a net income of $22.2 million. This figure confirmed a recovery from the previous year’s net loss of $1.1 billion and the company attributed the improvement to the tangible increase in the price of Bitcoin.
MicroStrategy Sells Equity and Bonds to Acquire BTC
MicroStrategy’s interest in accumulating BTC began during the global pandemic of 2020. Executive chairman and co-founder of the software business intelligence firm, Michael Saylor pushed the company into investing billions of dollars in the acquisition of Bitcoin. As part of his strategy, Saylor secured funds to embark on this venture by selling some of MicroStrategy’s equity and bonds.
Again, the company is about to engage this strategy by selling stocks worth $750 million to Cowen and Company, LLC, Canaccord Genuity LLC, and Berenberg Capital Markets LLC.
MicroStrategy’s Chief Financial Officer, Andrew Kang commended this strategy of raising capital through the equity program. He mentioned that in Q2, MicroStrategy added a total of 12,333 Bitcoins with a total of $347 million, a figure representing the largest increase in a single quarter since Q2 2021.
Noteworthy is the fact that MicroStrategy has continued to demonstrate an undying commitment to Bitcoin. All of these purchases and its current substantial BTC portfolio holding further cements the company’s position as a major player in the crypto’s ecosystem.
Saylor is very bullish on the premier digital currency and has predicted that the token will likely not fall to zero. Instead, it would move to 10X from the current price, then another 10X in the near future, and based on his analysis, regulatory clarity will play a pivotal role in achieving the feat.
Institutional investors’ recent heightened interest in BTC and the applications for spot BTC ETF from the likes of Blackrock, Citadel, Valkyrie, WisdomTree, and Fidelity is also believed will play a part in driving the growth of the price of Bitcoin in the near future.
