Michael Saylor’s MicroStrategy Plans $750M Stock Sale to Buy More Bitcoin
US software giant MicroStrategy plans to raise $750m through a stock sale and could use the funds to buy more Bitcoin, boosting its current holding.
MicroStrategy, a software company from the United States, plans to raise $750 million through a sale of its stock. It may use this money to buy more Bitcoin, a popular digital currency. The company has made an agreement with Cowen and Company, Canaccord Genuity, and Berenberg Capital for this stock sale.
MicroStrategy may use the money from this sale for different company needs, such as buying more Bitcoin and covering other costs. The company's Chief Financial Officer, Andrew Kang, mentioned that they might also use the funds to pay off some debt.
Right now, MicroStrategy owns 152,800 Bitcoins, worth about $4.5 billion. In the last few months, they have bought an additional 12,800 Bitcoin. MicroStrategy's chairman, Michael Saylor, said their goal is to earn more Bitcoin for their shareholders.
After the announcement of the planned sale, the price of Bitcoin increased by about 2%. The price went up from $29,200 to $29,616.
MicroStrategy's own shares have also done well this year, thanks to the strong performance of Bitcoin. The price of their shares has gone up by nearly 200% since the start of the year. Their share price rose from $145.02 in January to $434.98 currently.
This is a significant development as it signals a continued commitment to Bitcoin by a prominent company, which could influence other firms to follow suit.
