MicroStrategy to sell $500 million worth of stock to buy bitcoins

The company has already signed preliminary agreements with two investment banks

10.09.2022 - 07:30

1427

1 min

What’s new? MicroStrategy plans to sell its own stock for up to $500 million. According to a filing on the Securities and Exchange Commission’s (SEC) website, MicroStrategy will purchase bitcoin for a portion of the proceeds from the sale. The company has already entered into sales agreements with investment banks Cowen and Company and BTIG.

MicroStrategy’s application on the SEC’s website

What is known about MicroStrategy? It is a business intelligence software company. MicroStrategy was founded in 1989 by Michael Saylor, Sanju Bansal, and Thomas Spahr. On August 8, Saylor, MicroStrategy’s CEO, left his post while remaining as the Chairman of the Board of Directors, and Phong Le took his place.

As of September 10, 08:00 UTC, MicroStrategy (MSTR) shares are trading at $261,97, their value increased by 27,47% per day, according to Investing.com.

The company began buying bitcoins back in 2020. Since then, it has bought 129 699 BTC totaling about $4 billion, using funds from the sale of its own securities. MicroStrategy last purchased 480 bitcoins worth $10 million on July 28.

For the experts’ opinion on what MicroStrategy will do with its digital assets, see GetBlock Magazine’s editorial.

Author: