Crypto News

Saylor’s MicroStrategy plans $750M stock sale, possibly buying more Bitcoin

Saylor’s MicroStrategy plans $750M stock sale, possibly buying more Bitcoin
© Copyright Image: Crypto Breaking News

United States-based software development company MicroStrategy is planning to raise up to $750 million via a stock sale and says it may use the proceeds to buy more Bitcoin (BTC). 

In a filing to the Securities and Exchange Commission on Aug. 1, MicroStrategy announced it has entered into a sales agreement with three companies — Cowen and Company Canaccord Genuity and Berenberg Capital — relating to the sale of its class A common stock.

MicroStrategy said the proceeds of the proposed sale could be used for a variety of general corporate purposes, such as the acquisition of more Bitcoin and working capital.

“As with prior programs, we may use the proceeds for general corporate purposes, which include the purchase of Bitcoin as well as the repurchase or repayment of our outstanding debt,” said MicroStrategy CFO Andrew Kang during a second-quarter earnings call.

The Michael-Saylor-founded firm currently holds 152,800 Bitcoin, worth $4.5 billion at current prices. It added 12,333 Bitcoin in the second quarter and another 467 in July.

“Our objective is to find ways to generate incremental bitcoin for our shareholders and do that with either cash flow from the business or do it through intelligent accretive financings of equity or debt or other intelligent operations,” said MicroStrategy chairman Michael Saylor to investors on Aug. 1.

Related: MicroStrategy returns to profit and now owns $4.4B worth of Bitcoin

The price of Bitcoin rose nearly 2% immediately following the announcement, climbing from $29,200 to $29,771 at the time of writing. 

Bitcoin price over the last three months. Source: Cointelegraph Markets Pro

Shares in MicroStrategy have benefited significantly from the ongoing Bitcoin rally, having now risen nearly 200% since the start of this year. MSTR shares surged from $145.02 per share on Jan. 3 to $434.98 at the time of publication, according to data from Google Finance. 

Magazine: ‘Elegant and ass-backward’: Jameson Lopp’s first impression of Bitcoin

Source: Cointelegraph.com

The post Saylor’s MicroStrategy plans $750M stock sale, possibly buying more Bitcoin appeared first on Crypto Breaking News.

Read more: https://www.cryptobreaking.com/saylors-microstrategy-plans-750m-stock-sale-possibly-buying-more-bitcoin/

Text source: Crypto Breaking News

Disclaimer: Financial information and news are not financial advice, read the disclaimer.
Buy & sell Crypto in minutes

Join BINANCE!

The world's largest crypto exchange

You're just steps away from receiving your reward.

The most complete Crypto News Center.

Search Stories:

Latest top stories