Will MicroStrategy sell stocks for $ 1 billion and buy bitcoin with it? | by Titus | The capital | June 2021


MicroStrategy announced that it will sell $ 1 billion in shares to use the proceeds for general corporate purposes, including the additional purchase of Bitcoin.

The company said it would use $ 488 million from the proceeds of a private offering to buy Bitcoin. He said he could sell up to $ 1 billion worth of his stock for the same reason.

On Monday, the company filed an S-3 file with the United States Securities and Exchange Commission (SEC). In, MicroStrategy wrote that it would launch a securities offering that would allow it to sell up to 1 billion of its Class A common shares over time. The product is intended to be used for general business purposes, including the acquisition of Bitcoin.

The inscription says:

Bitcoin does not pay any interest or other return and, therefore, the ability to generate a return on the net proceeds of this offering depends on whether the value of Bitcoin increases with the net proceeds of this offering after our Bitcoin purchases.

“Future fluctuations in Bitcoin negotiation prices may cause us to convert Bitcoin purchased with the net proceeds of this offering in cash of a value significantly less than the net proceeds of this offering.

As the record also shows, the company owns 92,079 Bitcoin (BTC). The company also announced that it will purchase an additional $ 488 million in bitcoin. As can also be seen, MicroStrategy bought BTC at an average price of $ 24,450, which means that the value of the investment has increased by almost $ 1.5 billion.

If MicroStrategy purchases an additional $ 1 billion in Bitcoin, that would add an additional 25,000 Bitcoins.

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Disclaimer: These lines are not a substitute for investment advice, investments in the crypto market are made at your own risk. Only invest what you are prepared to lose. I receive commissions for purchases made through the links in this article.



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