United States, June 14, 2021 /AlexaBlockchain/ – MicroStrategy has announced $1 billion stock offering and may use some of the proceeds to buy more Bitcoin.
This news comes hours after disclosing that it completed a $500 million debt offering to fuel additional bitcoin purchases.
The publicly traded MicroStrategy plans to sell as much as $1 billion worth of its stock over time.
Details of the offering were included in the firm’s S-3 filing, published Monday.
“We intend to use the net proceeds from the sale of any class A common stock offered under this prospectus for general corporate purposes, including the acquisition of bitcoin, unless otherwise indicated in the applicable prospectus supplement. We have not determined the amount of net proceeds to be used specifically for any particular purpose. As a result, management will retain broad discretion over the allocation of the net proceeds of any offering.”
The company also mentioned in its filing that it views “bitcoin holdings as long-term holdings”, and “will continue to monitor market conditions in determining whether to conduct debt or equity financings to purchase additional bitcoin.”
“We view our bitcoin holdings as long-term holdings, and we do not plan to engage in regular trading of bitcoin and have not hedged or otherwise entered into derivative contracts with respect to our bitcoin holdings, though we may sell bitcoin in future periods as needed to generate cash for treasury management and other general corporate purposes. We have not targeted any specific amount of bitcoin holdings, and we will continue to monitor market conditions in determining whether to conduct debt or equity financings to purchase additional bitcoin.”
MicroStrategy currently holds more than 92,000 BTC on its balance sheet, an amount worth roughly $3.7 billion.