- MicroStrategy’s prospectus was filed with the Securities and Exchange Commission on Friday.
- The company has contracted with investment bank Quinn & Co. to sell $500 million of shares.
microstrategy (MSTR), a publicly listed software company, now has more than 129,000 BTC in reserves, making it the largest company owner of Bitcoin. A month after the departure of its stylized CEO Michael Saylor And one week after the attorney general in Washington, D.C. sued the company and Saylor for possible tax evasion, the company now wants to buy more.
MicroStrategy’s prospectus was filed with the Securities and Exchange Commission on Friday, revealing that the company has contracted with investment bank Cowen & Co. to sell up to $500 million of its Class A common stock.
Banking on Bitcoin
“We may use the net proceeds from this offer to purchase additional Bitcoin,” the company said in the SEC filing. Bitcoin, the largest cryptocurrency by market capitalization, reached an all-time high of $68,789 in November 2021, according to CMC data, before dropping to its current value of around $20,000. The ongoing cryptocurrency winter has affected many companies, with few bankruptcies reported.
The company’s software company claims to have amassed a large treasury of bitcoin under Saylor’s management, totaling 129,699 BTC, now worth more than $2.7 billion, which it intends to store indefinitely. Saylor resigned as CEO and became CEO of MicroStrategy last month after the company announced a $917.8 million non-cash digital impairment fee for the second quarter of 2022.
MicroStrategy said in its prospectus that the company does not intend to engage in trading or enter into derivative contracts with its Bitcoin ownership, but may sell Bitcoin when needed to generate cash for “treasury management and other general corporate purposes.”
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