MicroStrategy Will Sell $1B in Stocks to Buy Bitcoin

MicroStrategy software company made an announcement that it will invest $488 million in Bitcoin from the proceeds of a private offer.

The software maker is considering selling stocks, worth up to $1 billion, in order to buy more units of BTC. MicroStrategy is at the forefront of institutional investors with its crypto investments.

MicroStrategy Continues to Pursue a Bitcoin Strategy

On Monday, the American software company filed an application with the Securities and Exchange Commission (SEC). In a form S-3, MicroStrategy announced its intention to launch securities offerings that would allow selling a Class A share worth up to $1 billion. The capital gained in this way is then to be converted into Bitcoin.

With the new Bitcoin purchases, the company is further strengthening its position at the forefront of crypto institutions. With the purchased shares of BTC, the total value of Bitcoin in the software manufacturer’s portfolio could reach a $4B mark.

According to data from BitcoinTreasuries, the company currently owns 92,079 BTC, which is worth around $3.7 billion at the current rate. A form S-3 shows that MicroStrategy bought its existing Bitcoin holdings at an average price of $24,450. 

Bitcoin Price Rises Slightly After the Latest Correction

The Bitcoin rate was able to gain almost 9% in the last 24 hours. At the current price of just over $39,000, MicroStrategy software manufacturer would allow almost 25,000 BTC to be added to the portfolio using the entire proceeds from stock sales.

The latest news should drive the price somewhat in the near future. After the recent correction, investors can take a little breather.

It remains to be seen where the path of BTC will take it in the near future. The hoped-for rate records in May, exactly one year after the last halving event, fell short of expectations. It’s bad news for many investors who have relied on the statistics.

Conclusion: MicroStrategy Continues to Support Bitcoin 

The fact that a top institution like MicroStrategy doesn’t turn its back on the crypto market even in times of crisis is an absolutely positive sign. The upcoming investments will bring Bitcoin a price recovery that the coin definitely needs from an investor’s point of view.

Today, more and more people want to buy coins like Ethereum or Bitcoin. The ongoing Coronavirus crisis has made it clear how important it is to achieve financial independence. Cryptocurrencies offer a solution to this long-standing problem.

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