More Bitcoin! MicroStrategy, Unfazed By Bear Market, Wants To Buy More Crypto
The price of Bitcoin surged on Saturday, quickly rising more than 10% to barrel past the $21,000 level.
Market sentiment has become more bullish as a result of MicroStrategy’s US Securities and Exchange Commission request to sell $500 million worth of MSTR shares to buy additional Bitcoin.
At the time of writing, Bitcoin is trading at $21,434, up 8.3% in the past seven days, data from Coingecko shows.
The publicly traded software company holds more than 129,700 BTC, making it the largest corporate holder of the world’s most popular cryptocurrency.
MicroStrategy disclosed in a prospectus filed with the SEC on Friday that it has entered into an agreement with investment bank Cowen & Co. to load up to half a billion dollars in MSTR Class A shares.
Former MicroStrategy CEO Michael Saylor. Image: Bitcoin Magazine
What bear market? MicroStrategy Wants More Bitcoin
It’s the first tangible indication that MicroStrategy founder Michael Saylor, who recently stepped down as CEO to become executive chairman and focus on buying bitcoin, is not abandoning his ambitious plan to transform the company into a cryptocurrency proxy.
MicroStrategy, which now has Phong Le as its new CEO, reported a second-quarter loss of more than $1 billion after the price of BTC hit an all-time low.
Since 2020, Saylor has used funds raised through the sale of stocks and bonds to purchase approximately 130,000 BTC worth more than $2 billion.
The former CEO, who co-founded MicroStrategy in 1989, serves as Executive Chairman to this day.
MicroStrategy stated in a filing that the company may use the net proceeds from this offering to raise additional Bitcoin.
The MicroStrategy stock linked to the BTC price
The company issued a warning about Bitcoin’s volatility and sudden price movements, which saw the largest cryptocurrency by market cap trade below $20,000 earlier this week.
According to CoinMarketCap data, this figure is far from the all-time high of $68,789 last November.
In light of this year’s market volatility, MicroStrategy’s stock has been pegged to the price of Bitcoin, resulting in a $1.2 billion loss on its Bitcoin stake. On Friday, however, shares rose 12% as BTC rose nearly 10%.
Microstrategy owns 129,699 bitcoins, which it bought for a total of $3.9 billion and an average price of about $30,666 per coin. In fact, MicroStrategy has 14,590 BTCs and its subsidiary MacroStrategy LLC has 115,111 units.
The District of Columbia recently filed a lawsuit against MicroStrategy and Saylor for allegedly evading taxes on Saylor’s income in the District.
BTC total market cap at $413 billion on the daily chart | Source: TradingView.com Featured image from Nairametrics, chart from TradingView.com
