MicroStrategy is seeking to sell its class A shares to raise as much as $2 billion to buy more Bitcoin and for general corporate purposes.
In a regulatory filing with the US Securities and Exchange Commission, the Virginia-based company did not disclose a timeline for the share sales or reveal how much of the proceeds would be used to buy Bitcoin.
In June, after announcing an offering of $500 million in unsecured senior convertible notes to purchase more Bitcoin, MicroStrategy increased it one day later to $700 million, DL News reported.
MicroStrategy, co-founded and led by Michael Saylor, is already the world’s biggest public holder of Bitcoin and is not seeking to give up its position. It currently holds 226,500 Bitcoin worth more than $14 billion, depending on market fluctuations.
The company has said it considers itself the world’s first Bitcoin development company, committed to the continued growth of the Bitcoin network through its activities in the financial markets, advocacy, and technology innovation.
Last week, MicroStrategy reported a second-quarter net loss from its software business of $102.6 million or $5.74 a share, Bloomberg reported, noting that the company uses income from its software business to support Bitcoin purchases.
It was the company’s second consecutive quarterly loss, Bloomberg said, adding that analysts were keeping an eye on its cash flow situation.
Crypto market movers
Bitcoin is down 1.53% today at $60,728.29.
Ethereum is down 2.26% today at $2,912.98.
What we are reading
Why these libertarian economists oppose Trump’s Bitcoin ‘stockpile’ idea — DL News
Morgan Stanley tells wealth advisors they can pitch bitcoin ETFs in a first for a big bank — CNBC
Why crypto’s Fairshake super PAC has raised 20% less money than people think — DL News
