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4 June 2023
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MicroStrategy Selling $1,000,000,000 in Stock With Plans To Buy More Bitcoin

Enterprise analytics software firm MicroStrategy plans to issue additional shares to potentially finance the purchase of more Bitcoin.

According to a U.S. Securities and Exchange Commission (SEC) filing, the Michael Saylor-led firm says it will issue and sell class A common stock to raise up to $1 billion from “time to time” using the investment bank Jefferies as its agent.

MicroStrategy further says the proceeds from the equity sale will be used to purchase Bitcoin among other purposes.

“We intend to use the net proceeds from the sale of any class A common stock offered under this prospectus for general corporate purposes, including the acquisition of Bitcoin, unless otherwise indicated in the applicable prospectus supplement.”

The enterprise analytics software firm currently holds approximately 92,079 Bitcoin. In the SEC filing, MicroStrategy says buying and holding Bitcoin is part of its business model.

“MicroStrategy pursues two corporate strategies in the operation of its business. One strategy is to acquire and hold Bitcoin, and the other strategy is to grow our enterprise analytics software business.

In the first quarter of 2021, we determined to pursue as part of our overall corporate strategy, a strategy of acquiring Bitcoin with our liquid assets that exceed working capital requirements, and from time to time, subject to market conditions, issuing debt or equity securities in capital raising transactions with the objective of using the proceeds to purchase Bitcoin.”

According to MicroStrategy, the publicity generated by its Bitcoin purchases also serves as a potential marketing opportunity.

“We believe that our Bitcoin and related activities in support of the Bitcoin network enhance awareness of our brand and can provide opportunities to secure new customers for our analytics offerings.”

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