MicroStrategy Contemplates Buying More Bitcoin (BTC)
MicroStrategy appears to be contemplating a $750 million stock sale, with the proceeds being used to buy even more Bitcoins. The firm presently is the largest corporate holder of Bitcoin.
MicroStrategy released its second-quarter statistics on Tuesday, August 1, revealing its holdings of 152,800 BTC as of July 31, 2023. The firm disclosed its sales contracts with Cowen and Company, Canaccord Genuity, and Berenberg Capital in a filing with the U.S. SEC on the same day. Class A common shares will be sold under the terms of the agreement.
Banking on Bitcoin
The sale of MSTR shares, the business said, will generate funds for general corporate objectives. This involves getting some additional Bitcoins and some cash on hand.
MicroStrategy increased its Bitcoin holdings by 12,333 for a total value of $364.1 million during the second quarter. Since Q2 2021, this was the company’s second-largest quarterly purchase of Bitcoin.
The Bitcoin (BTC) price, which had been under selling pressure earlier in the week, surged to nearly $30,000 by Tuesday evening. The average Bitcoin holding cost for MicroStrategy is presently $29,672.
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After trading hours, the price of shares in MicroStrategy, which is seen by many as a proxy for Bitcoin, remained stable at roughly $434, down 0.60%. The price of Bitcoin at the time of writing is $25,520 and is up 2.14% in the last 24 hours.