MicroStrategy wants to raise $500 million to finance its investments

Through a stock sale, MicroStrategy hopes to raise up to $500 million to invest some of these funds in Bitcoin (BTC).


MicroStrategy wants to continue investing in Bitcoin

In a financial document released on Friday, the company MicroStrategy unveiled a plan to allow it to continue investing in bitcoin (BTC). For this, the company hopes to sell up to $500 million in Class A shares.

In order to carry out this operation, MicroStrategy has appointed two agents, who will act as intermediaries in this sale of shares. These are the investment banks BTIG and Cowen and Company, and the latter may be remunerated up to 2% of turnover achieved by these transfers.

In this same document, MicroStrategy has been transparent about these intentions. Indeed, although all of these funds will not necessarily be allocated to the purchase of new bitcoins, it is clear that this will be the case for at least part:

“We intend to use the net proceeds from this offering for general corporate purposes, including acquiring bitcoin. »

At the time of preparing its document, MicroStrategy was still in possession of 129,699 bitcoins. The average acquisition price of the latter is announced at 30,664 dollars per unit.

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The weight of Michael Saylor in corporate strategy

For legal reasons, MicroStrategy lists all the risks induced by its policy towards Bitcoin. While the crypto ecosystem may have feared that the removal of Michael Saylor from his CEO position would mean a change of course for the company, it seems that it does not according to this statement.

On the contrary, the company emphasizes the influence that its former CEO still wieldswhich indicates that nothing is in question:

“Because of the rights of our two classes of common stock and the fact that we are controlled by Michael J. Saylor, Mr. Saylor could prevent a third party from acquiring us or limit the ability of our other shareholders to influence the affairs of the company. business, which could make our Class A common stock less attractive. »

Indeed, there are several categories of shares, each delivering more or less significant voting power. In this case, the Class B shares held by Michael Saylor provide him with a significant weight in the choices of MicroStrategy.

On the other hand, the description that the company makes of itself in this financial document provides additional proof of its willingness to “hodler”. And for good reason, the company indicates that it pursues two strategies: one which consists in selling business analysis software and another involves buying and holding bitcoins.

This implies that MicroStrategy will not stop there in this sector of activity.

If this is certainly good news for the psychology of the market, we can however notice that a single actor alone holds more than 0.6% of the maximum supply of BTC.

👉 On the same subject – MicroStrategy and Michael Saylor prosecuted in the United States for tax evasion

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Source: MicroStrategy

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