According to CoinTelegraph, the company that owns the most Bitcoins in the world MicroStrategy is planning to raise $ 750 million through selling shares to buy more Bitcoins.
In a filing with the Securities and Exchange Commission (SEC), MicroStrategy announced that it has entered into a purchase agreement with three companies, including Cowen, Canaccord Genuity, and Berenberg Capital, in connection with the sale of shares. class A popular vote.
MicroStrategy Chief Financial Officer Andrew Kang said the proceeds from the stock sale could be used for a variety of general company purposes, such as buying more Bitcoin .
Amid the decline in revenue from the software business, MicroStrategy President Michael Saylor started buying Bitcoin in 2020 to reduce the amount of cash the company is holding because of concerns about inflation. A year ago, Saylor stepped down as CEO to focus on the company’s Bitcoin buying strategy.
The company purchased 12,333 Bitcoins for $347 million in the second quarter of 2023. In July, the company purchased another 467 BTC, bringing its total Bitcoin holdings to 152,800 Bitcoins, currently worth $4.5 billion. Shares of MicroStrategy are up nearly 200% since the start of the year thanks to Bitcoin’s bull run. According to the report, the company’s revenue remained stable in the first six months of 2023 at $242 million, compared with $241 million in 2021.
According to Coindesk, although this strategy is bringing success to the company, it also comes with many risks. Bitcoin’s volatility easily affects MicroStrategy’s financial situation, besides, depending on this digital currency makes the company vulnerable when the authorities tighten regulations or in the market occurs. unpredictable events.
MicroStrategy’s move to buy more Bitcoin could be targeted by the regulator. In the context of exchanges being “besieged by many governments”, the newly introduced regulations may hinder MicroStrategy’s ability to buy and sell Bitcoin.