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Gungun Bhatia
Sep 10, 2022
by Gungun Bhatia

MicroStrategy Could Raise Up to $500 Million to Purchase Bitcoin

MicroStrategy Bitcoin

Table of contents

  1. Claims Of Business Plan Section
MicroStrategy has the option to sell up to $500 million worth of class A ordinary shares while also increasing its Bitcoin holdings. According to a new prospectus submitted to the Securities and Exchange Commission (SEC), the company has a deal with brokers Cowen and Company and BTIG to sell up to $500 million in shares with the potential to buy additional Bitcoin.

The filing stated,

"We intend to use the net proceeds from this offering 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."

Under the previous CEO and Bitcoin enthusiast, Michael Saylor, MicroStrategy started adding significant amounts of Bitcoin to its financial sheet. The billionaire left the business last month but is still in charge of the finance committee. According to the future CEO, Phong Le, the company still intends to keep Bitcoin for the long term. The remarks were made at the same time as MicroStrategy disclosed impairment costs of more than $900 million due to the crypto market's collapse and the falling price of Bitcoin.

Claims Of Business Plan Section

The business plan section of the filing stated that they had not set any precise objective for the quantity of Bitcoin they aim to hold. Additionally, they would continue to watch market circumstances in evaluating whether to participate in new financings to buy additional Bitcoin. At the time of writing, Bitcoin was trading 10% higher than $21,000.

In a separate lawsuit, the Washington, D.C. attorney general accused Saylor of committing tax fraud. According to the complaint, MicroStrategy is allegedly helping Saylor.

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MicroStrategy Could Raise Up to $500 Million to Purchase Bitcoin
Gungun Bhatia
Gungun is an enthusiastic writer that likes to create content for various aspects of the blockchain and crypto industry. She carries out extensive research and provides readers with informative and high-quality material.

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