MicroStrategy plans to sell stock to raise $750 million to buy Bitcoin

Author: FELIX NG, COINTELEGRAPH; Compiler: Songxue, Jinse Finance

** U.S.-based software development firm MicroStrategy plans to raise up to $750 million in a stock offering and said it may use the proceeds to buy more bitcoin. **

In an August 1 filing with the US Securities and Exchange Commission, MicroStrategy announced that it has entered into sales agreements with Cowen and Company Canaccord Genuity and Berenberg Capital for the sale of its Class A common stock.

Proceeds from the **proposed sale could be used for various general corporate purposes, such as acquiring additional Bitcoin and working capital, MicroStrategy said. **

"As with previous plans, we may use the proceeds for general corporate purposes, including purchasing bitcoin and repurchasing or repaying our outstanding debt," said Andrew Kang, MicroStrategy's chief financial officer, during the second-quarter earnings call. .”

**The company founded by Michael-Saylor currently holds 152,800 bitcoins, worth $4.5 billion at current prices. 12,333 ** ****** bitcoins were added in the second quarter, and another 467 ****** bitcoins were added in July. **

On August 1, Michael Saylor, chairman of MicroStrategy, told investors: ** "Our goal is to find ways to create incremental bitcoin for shareholders, either through business cash flow, or through equity, debt Or other smart value-added financing for smart operations.”**

Immediately after the news was announced, the bitcoin price jumped nearly 2 percent, climbing from $29,200 to $29,771 at the time of writing.

(Bitcoin price over the past three months. Source: Cointelegraph Markets Pro)

MicroStrategy's stock has benefited greatly from Bitcoin's continued rally, gaining nearly 200% since the start of the year. According to Google Finance, MSTR stock has soared from $145.02 per share on Jan. 3 to $434.98 at the time of this article's publication.