The firm said it intended to use the proceeds from the offering “for
general corporate purposes, including the acquisition of Bitcoin.”
The same day business intelligence firm MicroStrategy announced it
would use $488 million from the proceeds of a private offering sale to
buy Bitcoin, the company said it may also sell up to $1 billion of its
stock for the same reason.
In a Monday S-3 filing for the U.S. Securities and Exchange Commission, MicroStrategy said
it would be launching an “at the market” securities offering which
would allow it to sell up to $1 billion of its Class A Common stock over
time. The firm said it intended to use the proceeds from the offering
“for general corporate purposes, including the acquisition of Bitcoin.”
“Bitcoin
does not pay interest or other returns and so ability to generate a
return on investment from the net proceeds from this offering will
depend on whether there is appreciation in the value of Bitcoin
following our purchases of Bitcoin with the net proceeds from this
offering,” said the filing. “Future fluctuations in Bitcoin trading
prices may result in our converting Bitcoin purchased with the net
proceeds from this offering into cash with a value substantially below
the net proceeds from this offering.”
Related: MicroStrategy could hold more than $4B in Bitcoin after latest private offering and crypto purchase
According to the SEC filing, MicroStrategy held 92,079 Bitcoin (BTC)
— roughly $3.7 billion at the time of publication — as of June 4, with
the company saying today it intended to purchase an additional $488
million in the cryptocurrency. The filing shows MicroStrategy purchased its existing holdings at an average BTC price of $24,450, meaning that the company has seen the value of its crypto increase by almost $1.5 billion.
Should
the firm use the entirety of the $1 billion proceeds to invest in
Bitcoin again, it would add roughly 25,000 coins to its coffers at the
current value of $40,150. The price of the crypto asset has risen by more than 8.8% in the last 24 hours.
