Since Microstrategy’s $500 million sales in debt offerings, the publicly-traded software company has taken further steps to fuel its Bitcoin hoarding. In an announcement earlier this week, Microstrategy indicated through an SEC filing that it is planning to sell up to $1 billion of its shares to increase its holding of the leading cryptocurrency bitcoin.
Investment bank Jefferies was the underwriter for the deal.
The specifics of the offering were all detailed in the firm’s S-3 filing, which was published on Monday. The filing showed that investment bank Jefferies was the underwriter for the deal. The filing stated, “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.”
Microstrategy continues to accumulate cryptocurrency holdings.
Since Bitcoin’s nearly 40% decline a few months ago, Microstrategy has continued accumulating more of the cryptocurrency. The company now holds more than 92,000 BTC on its balance sheet — worth approximately $3.68 billion, with the leading cryptocurrency trading at $40,000. Microstrategy (MSTR) shares rose 5.36% following the announcement on Tuesday. Its shares gained more than 21% in the past month, thanks to a combination of factors, including Bitcoin bouncing 20% from June lows and the firm’s private debt offering sale. Several major institutions have recently shown interest in bitcoin.