MicroStrategy plans to sell stocks to raise $750 million to purchase Bitcoin.

MicroStrategy to sell stocks, raise $750M for Bitcoin purchase.

Author: FELIX NG, COINTELEGRAPH; Translation: Song Xue, LianGuai

US software development company MicroStrategy plans to raise up to $750 million through stock offerings and has stated that it may use the proceeds to purchase more Bitcoin.

In a filing submitted to the US Securities and Exchange Commission on August 1st, MicroStrategy announced that it has entered into sales agreements with three companies, Cowen and Company, Canaccord Genuity, and Berenberg Capital, regarding the sale of its Class A common stock.

MicroStrategy stated that the proceeds from the proposed sale can be used for various general corporate purposes, such as acquiring more Bitcoin and working capital.

During the second quarter earnings conference call, MicroStrategy CFO Andrew Kang stated, “As previously planned, we may use the proceeds for general corporate purposes, including the acquisition of Bitcoin, as well as the repurchase or repayment of our outstanding debt.”

The company, founded by Michael Saylor, currently holds 152,800 Bitcoins, valued at $4.5 billion at the current price. It added 12,333 Bitcoins in the second quarter and an additional 467 Bitcoins in July.

On August 1st, MicroStrategy Chairman Michael Saylor stated to investors, “Our goal is to find a way to create incremental Bitcoin for shareholders, either through business cash flow, equity, debt, or other smart operational and value-added financing.”

After the announcement, the price of Bitcoin immediately rose nearly 2%, from $29,200 to $29,771 at the time of writing.

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

MicroStrategy has benefited greatly from the continuous rise of Bitcoin, with its stock price rising nearly 200% since the beginning of this year. According to Google Finance data, MSTR stock price has skyrocketed from $145.02 per share on January 3rd to $434.98 per share at the time of publication.

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