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MicroStrategy, the software developer that has accumulated a substantial bitcoin (BTC) reserve in recent years, is poised to potentially generate up to $750 million through the issuance of additional stocks. The company intends to utilize these funds to bolster its bitcoin holdings, alongside other strategic ventures.
The announcement was officially disclosed through a filing with the U.S. Securities and Exchange Commission on Tuesday evening. As a result, Bitcoin's price experienced a significant surge, reaching nearly $29,800, up from its previous level of approximately $29,200.
Chairman Michael Saylor has significantly immersed MicroStrategy in the world of Bitcoin, acquiring billions of dollars' worth of the cryptocurrency since the onset of the pandemic. He has opted for a traditional approach to fund these purchases, raising capital by issuing additional equity and bonds from the publicly traded company. This further reinforces his strategic vision for the company.
As of July 31, the company possessed a staggering 152,800 bitcoins, currently valued at approximately $4.5 billion.
“We intend to use the net proceeds from this offering for general corporate purposes, including the acquisition of bitcoin and working capital, and, subject to market conditions,” already issued bonds, according to MicroStrategy’s Tuesday filing.
