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MicroStrategy to sell $500 million in stock to buy more Bitcoin

MicroStrategy to sell $500 mn in stock to buy more BTC

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.


Why is MicroStrategy buying so much Bitcoin?

Hedge Against Inflation: MicroStrategy sees Bitcoin as a hedge against inflation, similar to gold. With concerns about fiat currency devaluation, Bitcoin is viewed as a store of value that can protect against inflationary pressures.
Long-Term Value Preservation: Saylor and MicroStrategy believe in the long-term value preservation qualities of Bitcoin. They consider it a reliable asset to store wealth and safeguard against economic uncertainties.
Digital Gold: Saylor has emphasized that Bitcoin represents a form of digital gold. MicroStrategy’s investment strategy aligns with the belief that Bitcoin can serve as a digital alternative to traditional gold, providing a secure and decentralized form of value.

What percentage of Bitcoin is owned by MicroStrategy?

As of the available information, MicroStrategy owns approximately 0.9% of the total Bitcoin supply. The company holds around 189,150 BTC, and with the current circulating supply of Bitcoin being around 21 million, this represents a notable portion of the cryptocurrency market.

How much does MicroStrategy cost Bitcoin?

MicroStrategy has acquired a significant amount of Bitcoin, holding approximately 189,150 BTC. The total cost of their Bitcoin holdings is not explicitly mentioned in the provided search results. However, in the third quarter of 2023, MicroStrategy acquired 6,067 bitcoins at an average cost of $27,531 per bitcoin, totaling $167.0 million.

Did MicroStrategy sell 13.5% of its stake to trading firm Group One?

There is no information in the provided search results confirming that MicroStrategy sold a 13.5% stake to the trading firm Group One. It’s crucial to note that the search results may not cover all the latest developments, so checking more recent and reliable news sources would be advisable to confirm the latest updates on MicroStrategy’s stake sales.

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