MicroStrategy has recently submitted its filing at the US Securities and Exchange Commission (SEC), mentioning what it plans on doing in terms of Bitcoin (BTC).
The major business intelligence company in the United States has announced what it intends to do in the upcoming days. The ultimate goal of MicroStrategy is to accumulate even more Bitcoin, eventually building up an even stronger empire of Bitcoin.
MicroStrategy to Sell Class A Common Stock
MicroStrategy has recently announced that it has recently formed an agreement with BTIG and Cowen & Company which are two agents.
Following the agreement, MicroStrategy will have the agents sell their class A common stock. The overall value of the stocks the company is aiming to sell is worth $500 million.
The information has been shared by MicroStrategy with the Securities and Exchange Commission. The SEC officials confirmed that MicroStrategy intends to sell its class A common stock.
MicroStrategy’s BTC Accumulation
Michael Saylor, the founder of MicroStrategy had convinced the board of directors at the company to trust in Bitcoin. Therefore, in late 2020, MicroStrategy started to invest in Bitcoin and continued investing whenever a Bitcoin market downturn came into action.
From 2020 until now, MicroStrategy has spent $3.977 billion accumulating 129,699 Bitcoin. No matter the downturn in the cryptocurrency industry, MicroStrategy has continued accumulating Bitcoin.
MicroStrategy to Acquire $500 Million Worth of Bitcoin
Even now when the cryptocurrency market is facing a downtrend, MicroStrategy is more than determined to continue investing in Bitcoin.
The officials have mentioned in the filing that the $500 million they generate from the stock sales will be used to buy more Bitcoin.
In addition to buying Bitcoin, MicroStrategy intends to invest a portion of the proceeds from the stock sales to other corporate purposes.
MicroStrategy Benefits from the Bitcoin Downtrend
It has become a common practice for MicroStrategy to acquire as much Bitcoin as possible whenever the trading price of Bitcoin suffers a significant slump.
As the situation is currently favorable for MicroStrategy, it has decided to go all out and invest another huge amount to acquire even more Bitcoin.
At the time of writing, the trading price of Bitcoin is worth $21,219.62 per BTC. If MicroStrategy proceeds with investing the entirety of the proceedings from the stock sales, it will have acquired 23,563.09 Bitcoin.
As of now, the total number of Bitcoin under MicroStrategy’s possession is 129,699. Adding another large batch of BTC would increase the overall BTC holding of MicroStrategy to 153,262.09 Bitcoin.
Given the current trading price of Bitcoin, the overall accumulation of MicroStrategy’s Bitcoin would value at $3.252 billion.
On the other hand, given the amount MicroStrategy has already spent in BTC accumulation, its overall spending would surge to $4.477 billion.
If MicroStrategy does proceed with acquiring more Bitcoin, then a strong rally would be witnessed in the trading price of Bitcoin.