In order to sell up to $500 million in Class A stock, the company filed with the SEC. Try to guess what it would wish to buy with the money.
With almost 129,000 BTC in its bank account, publicly traded software business MicroStategy (MSTR) is already the only corporate Bitcoin holder. The company now wants to buy more, barely one month after its brash CEO Michael Saylor resigned and one week after the Washington D.C. Attorney General sued the company and Saylor for alleged tax evasion.
MicroStrategy stated in a prospectus submitted to the SEC on Friday that it has a deal with investment bank Cowen & Co. to sell up to $500 million in shares of its Class A common stock.
The company warned that future changes in the value of Bitcoin trading could force it to convert any Bitcoin it had bought with the net proceeds of this sale into cash with a value that was significantly lower.
The corporate software firm, under Saylor, has amassed a sizeable Bitcoin treasury of 129,699 BTC, currently valued at over $2.7 billion, which the business claims it expects to maintain for a long time.
Saylor resigned as CEO and became executive chairman last month, and MicroStrategy disclosed a non-cash digital impairment charge of $917.8 million in the second quarter of 2022.
MicroStategy stated in the prospectus that it does not intend to trade Bitcoin or enter into derivative contracts with it; nevertheless, it may sell Bitcoin when necessary to raise money for "treasury management and other general business reasons."
The company stated, "We have not targeted any precise level of Bitcoin holdings. In order to decide whether to carry out debt or equity financings to buy more Bitcoin, "We will continue to observe market conditions."
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