Business Intelligence company MicroStrategy plans to add more bitcoins to its stash via a $500 million stock sale.
According to a filing with the SEC, MicroStrategy announced an agreement with investment bank Cowen & Co. to sell up to $500 million in Class A common stock.
The filing noted, “We may use the net proceeds from this offering to purchase additional Bitcoin.”
“Future fluctuations in Bitcoin trading prices may result in converting Bitcoin purchased with the net proceeds from this offering into cash with a value substantially below the net proceeds from this offering” MicroStrategy warned.
Last month, Bitcoin enthusiast and Microstrategy CEO Michael Saylor swapped his role from CEO to Executive Chairman of the organization. Under Saylor, MicroStrategy amassed 129,699 bitcoins, currently valued at over $2.7 billion, which the firm claims it expects to hold for a long time.
The company said it has no plans to engage in trading or enter into derivative contracts with its Bitcoin holding.
However, MicroStrategy noted in the filing that it may sell Bitcoin when necessary to raise funds for “treasury management and other general corporate purposes”.
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