MicroStrategy Files for $750M Stock Offer After Buying 16.1K BTC

MicroStrategy (NASDAQ: MSTR), the biggest publicly-listed corporate owner of Bitcoin (BTC), acquired an additional 16,130 BTC for over $539 million on Thursday. The same day, the company also announced it filed to sell up to $750 million of its common stock. 

MicroStrategy Boosts BTC Holdings to 174.5K

Michael Saylor’s MicroStrategy purchased another 16,130 Bitcoin for more than $539 million, the business intelligence firm announced on Thursday. The investment was made at an average price of $36,785 per BTC.

The move brings MicroStrategy’s total Bitcoin holdings to 174,530, acquired for $5.28 billion at an average price of $30,252. The company’s shares fell roughly 2% at the market open.

Before this, the last time MicroStrategy invested in Bitcoin was late September, when it bought 158,000 coins. The purchases further underscore a notable shift in the company’s strategic approach, which was traditionally recognized as a business intelligence and software company. Under Saylor’s influence, MicroStrategy has fully embraced the maiden cryptocurrency, making it the focal point of its treasury reserve assets.

The latest investment comes from a much-awaited rally in the crypto market following months of stagnation. Bitcoin recently surpassed the $37,000 threshold amid a fresh rash of optimism brought on by growing convictions that US regulators would soon approve the first-ever spot Bitcoin exchange-traded fund (ETF). 

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MicroStrategy Files to Sell Up to $750M of Common Stock

MicroStrategy’s announcement of a new Bitcoin top-up coincided with the filing for a stock offering of up to $750 million on the same day. Notably, the company said it has entered into a sales agreement with several sales agents to initiate a sale of its class A common stock. 

“In accordance with the terms of the Sales Agreement, under this prospectus supplement, we may offer and sell shares of our class A common stock having an aggregate offering price of up to $750,000,000 from time to time through one or more of the Agents, acting as our sales agents.”

– MicroStrategy said in a release.

The plan to sell a portion of its stock was first announced in August. At the time, MicroStrategy said it would use the raised funds to buy more Bitcoin, among other things. Today, the firm is the biggest corporate BTC holder, followed by Marathon Digital (NASDAQ: MARA) and Galaxy Digital Holdings (TSE: GLXY).

Do you think MicroStrategy’s aggressive Bitcoin strategy will pay off significantly in the long term? Let us know in the comments below.