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Investing.com – MicroStrategy, one of Bitcoin’s biggest buyers, plans to sell up to $750 million in stock, possibly to acquire BTC. The price of bitcoin was impacted upwards following this announcement.
MicroStrategy, the software developer, has accumulated a huge stash of bitcoin (BTC) in recent years and could further increase its holdings with this operation.
The announcement was made in a filing with the U.S. Securities and Exchange Commission (SEC) late Tuesday. The price of bitcoin rose significantly in the process, approaching $29,800 from around $29,200.
President Michael Saylor has heavily involved MicroStrategy in bitcoin, buying billions of dollars since the pandemic. To do so, he raised funds the old-fashioned way, selling more stocks and bonds of the publicly traded company. This operation is part of this strategy.
“We intend to use the net proceeds of this offering for general corporate purposes, including bitcoin acquisition and working capital, and, subject to market conditions, for obligations already issued,” according to the document filed Tuesday by MicroStrategy.
However, the crypto market remains somewhat lackluster despite a year-to-date rebound amid rising rates and economic risks.