MicroStrategy is back. After the sale of privately offered bonds worth 500 million
MicroStrategy is rapidly approaching 100,000 BTC in the company’s Bitcoin holding subsidiary, MacroStrategy LLC. The company’s recent stock offering suggests it could cross the 100,000 threshold sooner rather than later.
This week’s SEC filing will enable MicroStrategy to sell its Class A common stock valued at $ MSTR for up to $ 1 billion over time; In the SEC Prospectus, the Company stated that it “intends to use the net proceeds from the sale of Class A common shares offered under this Prospectus for general corporate purposes, including the acquisition of Bitcoin, except as specified in the applicable Supplement otherwise stated. ”
Of course, with over 92,000 BTC in the newly formed subsidiary’s account, MicroStrategy could already top the 100,000 mark, even with the most recent bond offer. At current prices, the company could secure more than 10,000 Bitcoin with the cash from senior secured note sales, making the common stock announcement just the icing on the MacroStrategy BTC holdings. Even with the company’s current numbers alone, they are by far the company leader when it comes to BTC inventory, with more than twice as much BTC as Tesla.
Related reading | MicroStrategy announces a $ 15 million Bitcoin purchase
More from the files
The SEC filings share a bit of the macro perspective for the company: “We view our Bitcoin holdings as long-term holdings, and we do not plan to trade bitcoin on a regular basis and have no hedging or otherwise entering into derivative contracts in relation to our Bitcoin holdings, although we may sell bitcoin as needed in future periods to generate cash for treasury management and other general corporate purposes.
In addition, the company stated in the submissions that it is “exploring possibilities for the application of Bitcoin-related technologies such as blockchain analysis in our software offerings”. The company has so far viewed its business as a two-pronged business growing its enterprise analytics software business and acquiring and holding Bitcoin.
MicroStrategy stock has responded positively to recent fundraising, with sentiment focused on buying more Bitcoin. One analyst, Lark Davis, jokingly said on Twitter that he was surprised that furniture was left in the MicroStrategy offices – “could just sell anything and buy bitcoin!” He said. MicroStrategy CEO Michael Saylor responded to the tweet with the impatient and thinking face emojis.
Despite a wild ride this year for MicroStrategy $MSTR, the recent SEC filings seem to have resulted in positive investor feedback.| Source: $MSTR-NASDAQ on TradingView.com
Related reading | MicroStrategy wins over $ 1.5 billion in orders for $ 500 million notes to fund Bitcoin purchases
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