• Thu. Apr 18th, 2024

For Bitcoin Purchase, Microstrategy Puts $1 Billion Worth of Stocks for Sale

Jun 19, 2021

US$ 1 Billion worth of stocks relating to Microstrategy has been put up for sale by the company. The seller wants to sell the stocks and utilize the sale proceeds towards adding more Bitcoins to its present Bitcoin holding. Earlier, Microstrategy had sold secured notes worth about US$ 5000 and said that the proceeds of these notes will be utilized towards Bitcoin purchase.

It really doesn’t matter at all to Microstrategy if Bitcoin’s value is going down or up. What matters to the company that it has full faith in Bitcoin and its future value. This is why since the end of 2019 and to date, Microstrategy has been non-stop in sending funds after funds as an investment in Bitcoin. In fact, the company has set up a target for itself in which it wants to quickly make up its Bitcoin holding above 100 K.

For this very purpose, Microstrategy had earlier made available for purchase its secured notes. It was reported that the company had placed US$ 500 Million worth of secured notes. As per the decision of the company, the revenues to be collected from the sale were to be utilized towards Bitcoin purchase. Now Microstrategy has come up with a new plan. According to this new plan, the company is now trying to dispose of its stocks and believes that it could raise US$ 1 Billion and above. For this, a statement of registration has been submitted by Microstrategy before the Securities & Exchange Commission of the US.

In the filing, Microstrategy informed the authority that securities worth US$ 1 Billion will be put up for sale in an open market. The stocks to be sold are from the pool of Microstrategy’s “A Class” stocks which are registered as “MSTR” with the NASDAQ. The mode of selling the stocks and the utilization of after-sales proceeds have been described in the filed statement. The statement revealed that Microstrategy is intending once again to dispose of its assets, particularly A-Class category stocks. The after-sales proceeds will then be utilized by the company towards buying of leading digital asset i.e. Bitcoin.

Apparently, Microstrategy is already in possession of a large number of Bitcoins. As per the company’s last investment, Microstrategy owns a total of 92,079 BTCs. However, the company had recently developed a Bitcoin-oriented company where it has kept all of its Bitcoins. The newly formed crypto investment arm of Microstrategy is known as “Macrostrategy LLC”.

As regards the sale of secured notes, Microstrategy told that the sale is ongoing. The company is targeting to collect sale proceeds to a certain limit which could ensure raising the company’s Bitcoin holding above 100 K threshold. According to an official of Microstrategy, currently, Bitcoin’s value is very low, and purchasing Bitcoins today would mean earning profits tomorrow.

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