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MicroStrategy, the software developer that has accumulated a substantial bitcoin (BTC) reserve in recent years, is considering a stock sale to potentially raise up to $750 million. The company intends to utilize the funds to expand its bitcoin holdings and pursue other strategic initiatives.
The news of the announcement was disclosed through a filing with the U.S. Securities and Exchange Commission on Tuesday evening. As a result, there was a significant increase in Bitcoin's price, with it surging to nearly $29,800 from the previous level of around $29,200.
Chairman Michael Saylor has taken MicroStrategy to a deep involvement with bitcoin, acquiring billions of dollars' worth since the onset of the pandemic. What sets his approach apart is the traditional method he has employed to raise funds for these investments: issuing additional equity and bonds from the publicly traded company. This further reinforces his strategy.
As of July 31st, the company possessed a substantial sum of 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.
