In a recent development, MicroStrategy, a US-based software firm, has announced intentions to raise about $750 million through stock sales. According to the platform, which is currently one of the biggest corporate holders of Bitcoin, proceeds realized from the sale will be used to purchase more Bitcoin. More BTC For MicroStrategy? In a filing with the United States Securities and Exchange Commission on August 1, MicroStrategy disclosed that it has entered into a sales contract with three companies, namely Canaccord Genuity, Cowen and Company, and Berenberg Capital, with respect to the sale of MicroStrategy’s class A common stocks. Related Reading: Here’s The Total Number Of XRP That Ripple Currently Holds Since MicroStrategy is a publicly traded company, the sales are expected to be available to the general public and to take place on the stock market. The firm is guaranteed easy access to capital since its stock will be offered to every interested investor. According to MicroStrategy, the proceeds raised from the proposed sale would be applied to different corporate objectives, which according to MicroStrategy’s Chief Financial Officer Andrew Kang, shall include “.. the purchase of Bitcoin as well as the repurchase or repayment of outstanding debt.” BTC bulls still holding $29,300 | Source: BTCUSD on Tradingview.com Bitcoin Price Reaction To The News MicroStrategy is a firm founded by Micheal Saylor and one of the largest holders of Bitcoin. The firm presently holds 152,800 Bitcoin valued at $4.5 billion at the current market price. The firm purchased an additional 12,333 Bitcoin during the second quarter of the year and another 467 in July. It is currently one of the most prominent champions of Bitcoin with a bold investment strategy to boost its Bitcoin holdings regardless of whether or not the market is trending. Speaking to Investors following the announcement, Chairman and founder of the firm Micheal Saylor noted that their 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.” Related Reading: BlackRock CEO Larry Fink Is The Best Thing To Happen To Bitcoin, Mike Novogratz Says In reaction to the announcement, the price of Bitcoin rose to about 2%, increasing from $29,200 to $29,771 at the time of writing. Shareholders in the company also benefited following the ongoing Bitcoin rally, with shares increasing to nearly 200% since the beginning of the year. According to data from Google Finance, MSTR shares have risen from $145.02 per share on January 3 to $434.98 at the time of publication. Featured image from Bitcoinist, chart from Tradingview.com
