- A prospectus for MicroStrategy was filed with the SEC on Friday.
- The company has contracted investment bank Cowen & Co to sell $500M stocks.
MicroStrategy (MSTR), a publicly listed software firm, now has over 129,000 BTC in its reserves, making it the biggest corporate holder of Bitcoin. One month after the departure of its bombastic CEO Michael Saylor and one week after the Washington D.C. Attorney General sued the firm and Saylor for potential tax evasion, the corporation now wants to purchase more.
A prospectus for MicroStrategy was filed with the SEC on Friday, and it revealed that the company has contracted investment bank Cowen & Co. to sell up to $500 million in shares of its Class A common stock.
Banking on Bitcoin
The business said in the SEC filing, “We may use the net proceeds from this offering to purchase additional Bitcoin.” Bitcoin, the largest cryptocurrency by market cap, hit an all-time high of $68,789 in November 2021, according to CMC data, before falling to its current value of around $20,000. The ongoing crypto winter has affected many firms, with a few filing bankruptcies.
The corporate software firm claims it has accumulated a substantial Bitcoin treasury under Saylor, totaling 129,699 BTC, now worth over $2.7 billion, which it intends to store indefinitely. Saylor resigned as CEO and became executive chairman of MicroStrategy last month after the company announced a non-cash digital impairment charge of $917.8 million for the second quarter of 2022.
MicroStrategy said in its prospectus that the company does not intend to participate in trading or enter into derivative contracts with its Bitcoin ownership, but that it may sell Bitcoin when required to generate cash for “treasury management and other general corporate purposes.”
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