Despite the downturn in the crypto market, US software developer MicroStrategy (MSTR) remains bullish on Bitcoin as ever, with the company revealing plans to sell up to $500 million of stock to purchase more Bitcoin.
The company revealed its plan in a filing with the Securities and Exchange Commission (SEC). The firm has retained Cowen and Company and BTIG as its agents for the share sale.
MicroStrategy and its former CEO and founder Michael Saylor have never missed an opportunity to snap up Bitcoin. If the sale goes through, the proceeds from the sale of MSTR stock could go towards acquiring more Bitcoins and for general corporate purposes. However, the company did not disclose the amount that will be allocated for purchasing Bitcoin.
Fully committed to Bitcoin
MicroStrategy has emerged as a corporate Bitcoin vault and is the single largest corporate holder of Bitcoin, with a holding of over 129,000 BTC. The firm incurred a $1.2 billion loss on its Bitcoin bet. The recent plan to acquire more BTCs comes a month after Michael Saylor stepped down as chief executive and transitioned to the role of chairman. A week after, the Washington DC Attorney General sued the company and Saylor for alleged tax fraud.
Even though Michael Saylor is out of the hot seat, he appears to be fully aligned with the new CEO Phong Le on the question of acquiring Bitcoin. The incumbent has said that the firm still plans to hold Bitcoin for the long term.