MicroStrategy’s prospectus states, “We may offer and sell shares of our class A common stock having an aggregate offering price of up to $500,000,000 from time to time through one or more of the Agents, acting as our sales agents.”
MicroStrategy entered into a sales agreement with Cowen and Company and BTIG to sell up to $500M of its shares to fund its Bitcoin acquisition strategy.
The announcement came just over a week after Washington D.C.’s Attorney General filed civil charges against MicroStrategy and its founder Michael Saylor over allegations of tax fraud.
On Friday, the Business Intelligence software giant filed a prospectus with the US SEC that states MicroStrategy plans to sell up to $500M of its class A common stock. The prospectus highlights the company’s business strategy of acquiring Bitcoin assets using liquid assets “that exceed working capital requirements,” in addition to engaging in other capital-generating activities and using their proceeds to increase MicroStrategy’s Bitcoin reserves.
MicroStrategy claims its Bitcoin holdings are a long-term investment and dismisses the notion of trading or entering its Bitcoin assets into derivative contracts.
According to the firm,
“We have not set any specific target for the amount of bitcoin we seek to hold, and we will continue to monitor market conditions in determining whether to engage in additional financings to purchase additional bitcoin.”
MicroStrategy has a significant Bitcoin treasury, with its holdings amounting to 129,698 BTC as of writing this article. With its latest prospectus, MicroStrategy aims to further increase its Bitcoin assets to compensate for the $1.2B loss incurred due to the recent bearish market trends.
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