MicroStrategy, a software development company based in the United States, has revealed plans to raise up to $750 million through a stock sale and stated that it may use the proceeds to purchase more Bitcoin (BTC).

In a filing submitted to the Securities and Exchange Commission (SEC) on August 1, MicroStrategy disclosed that it has entered into a sales agreement with three companies—Cowen and Company, Canaccord Genuity, and Berenberg Capital—regarding the sale of its class A common stock.

According to MicroStrategy, the funds from the proposed sale could be utilized for various general corporate purposes, including the acquisition of additional Bitcoin and working capital.

MicroStrategy CFO Andrew Kang explained during a second-quarter earnings call, “As with prior programs, we may use the proceeds for general corporate purposes, which include the purchase of Bitcoin as well as the repurchase or repayment of our outstanding debt.”

The company, founded by Michael Saylor, currently holds 152,800 Bitcoin, valued at $4.5 billion at current prices. It acquired 12,333 Bitcoin in Q2 and an additional 467 in July.

MicroStrategy Chairman Michael Saylor expressed the company’s objective to generate more Bitcoin for shareholders through various means, stating, “Our objective is to find ways to generate incremental bitcoin for our shareholders and do that with either cash flow from the business or do it through intelligent accretive financings of equity or debt or other intelligent operations.”

Following the announcement, the price of Bitcoin experienced a 2% increase, rising from $29,200 to $29,771 at the time of writing.

MicroStrategy’s stock has seen significant gains due to the ongoing Bitcoin rally, with a nearly 200% increase since the beginning of the year. MSTR shares rose from $145.02 per share on January 3 to $434.98 at the time of publication, according to data from Google Finance.

FAQ

What is MicroStrategy?

MicroStrategy is a software development company based in the United States.

How much Bitcoin does MicroStrategy currently hold?

MicroStrategy currently holds 152,800 Bitcoin.

How much money does MicroStrategy plan to raise through the stock sale?

MicroStrategy plans to raise up to $750 million through the stock sale.

What does MicroStrategy plan to do with the proceeds from the stock sale?

MicroStrategy may use the proceeds from the stock sale to buy more Bitcoin and for general corporate purposes.

How has MicroStrategy’s stock price performed this year?

MicroStrategy’s stock price has risen nearly 200% since the start of the year.

What was the immediate market reaction to MicroStrategy’s announcement?

The price of Bitcoin rose nearly 2% immediately following MicroStrategy’s announcement.

Summary

MicroStrategy, a US-based software development company, has announced its plans to raise $750 million through a stock sale and has indicated that it may use the funds to acquire more Bitcoin. The company currently holds 152,800 Bitcoin, worth $4.5 billion at current prices. MicroStrategy’s stock price has seen significant gains as a result of the Bitcoin rally, rising nearly 200% this year.