MicroStrategy to Sell $1B worth of Company Stock to Buy Bitcoin

MSTR (NASDAQ) closed 15.89%, or $82.05 up, on its price on 14 June as the news of the new BTC purchase broke.

MicroStrategy is looking to sell up to $1 billion worth of its Class A common stock, with the proceeds of the sale used to buy more Bitcoin, according to a prospectus filed with the US Securities and Exchanges Commission on 14 June.

A Form S-3 document the cloud service provider filed reveals that the company is ready to offload the stock over time.

MicroStrategy CEO Michel Saylor has also confirmed the planned sale on Twitter, revealing that the company had launched an “at the market” securities offering for flexibility” to liquidate the $1 billion worth of MSTR stock.

The news comes hot on the heels of a $500 million sale of senior secured notes, with the money going into a purchase of 11,900 bitcoins. The company’s BTC holdings now stand at 92,079 bitcoins, which the firm says are securely held under the recently formed MacroStrategy LLC subsidiary.

The share price of the MicroStrategy MSTR (NASDAQ) rose by 15.89%, adding about $82.05 to its value after the news hit the market on 14 June. The stock is priced at around $598.49 as of writing.

Since MicroStrategy’s first purchase of BTC, Michael Saylor has become one of Bitcoin’s strongest supporters. He has continually pointed to increased institutional adoption of the benchmark cryptocurrency as a signal of its strength and eventual use as a global currency and store of value.

He also thinks Bitcoin is great for any investment portfolio, recently noting:

“If you invest 5% of your portfolio in Bitcoin, you have made the decision to invest 95% of your portfolio in assets getting demonetised by Bitcoin.”

Bitcoin rose to an all-time high of $64,895 on 14 April but crashed more than 50% to lows of $30,000 by 19 May. The crypto trailblazer has seen its value recover in the past week, with prices currently consolidating near $40,000.