MicroStrategy will sell shares worth up to $500 million. Proceeds can be invested in bitcoin

MicroStrategy will sell shares worth up to $500 million. Proceeds can be invested in bitcoin

MicroStrategy will sell shares worth up to $500 million. Proceeds can be invested in bitcoin

MicroStrategy has applied to sell shares worth up to $500 million. Proceeds can be used to buy bitcoin, follows from the supplement to the prospectus dated September 9, 2022.

According to the document, MicroStrategy has entered into an agreement with the investment bank Cowen and Company and BTIG, which will act as financial intermediaries. We are talking about the sale of ordinary shares of class A at a price of $0.001 per security. 

“We intend to use the net proceeds from the offering for corporate purposes, including the purchase of Bitcoin, unless otherwise stated in the relevant prospectus supplement. We have not determined the amount of net proceeds used for any specific purpose,” the statement said.

The company noted that the volume of purchases of the first cryptocurrency will depend on the “market situation”.

At the time of writing, Bitcoin is trading near $21,450. The asset has gained 8% in the last week, according to CoinGecko.

MicroStrategy will sell shares worth up to $500 million. Proceeds can be invested in bitcoin

BTC/USDT hourly chart of the Binance exchange. Data: Trading View.

MicroStrategy shares reacted positively to the news. As a result of the trading session on September 9, the company's securities rose by almost 12%.

Michael Saylor: biography and views of the founder of MicroStrategy

As a reminder, in August 2022, MicroStrategy founder Michael Saylor stepped down as the company's CEO to focus on “innovation and long-term corporate strategy” that would further buy and hold bitcoin.

In the same month The Federal District of Columbia (USA) filed a lawsuit against MicroStrategy and Saylor. The prosecutor's office accuses them of tax evasion fraud.

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