MicroStrategy has announced a possible sale of its own shares worth up to $ 1 billion. The proceeds can be used to buy bitcoin.
On its website, MicroStrategy has published an application for the US Securities and Exchange Commission (SEC) in the form of S-3 of the intention to conduct an additional placement of securities. A few hours earlier, the company announced that it had successfully raised $ 500 million by placing bonds, which it also plans to invest in cryptocurrency.
The latest submission says:
“We intend to use any proceeds from this sale for general corporate purposes, including the purchase of bitcoin, unless otherwise specified in the accompanying documents. We have not determined how much of the proceeds will be spent on specific purposes. As such, management will reserve the right to wide discretion with regard to the allocation of proceeds from any proposal. ”
This model assumes that MicroStrategy will be able to sell shares “from time to time” depending on its own needs. According to some, this approach to fundraising will be less risky for MicroStrategy and the broader crypto market than using debt instruments. To date, MicroStrategy has concentrated under its management about 92,000 BTC, and taking into account the round closed on Monday and the current rate, the total number of coins in its reserves will exceed 100,000.
“Bitcoin does not generate interest payments, so the company’s ability to generate income from the proceeds from this offer will depend on the rise in the price of bitcoin. Future fluctuations in the price of bitcoin during the trading process may lead to the fact that the conversion of the bitcoins we have purchased into the traditional currency will take place at a much lower amount than will be raised from this offer, ”the firm adds.
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