MicroStrategy, following robust accumulation in the second quarter, prepares for additional Bitcoin acquisitions by liquidating the MDTR equity.
MicroStrategy, the largest corporate holder of Bitcoins globally, is planning a $750 million stock sale to raise funds for further Bitcoin purchases.
On August 1, MicroStrategy released its second-quarter results, revealing that it currently holds 152,800 BTC as of July 31, 2023.
On the same day, MicroStrategy filed with the SEC, announcing a sales agreement with three companies – Cowen and Company, Canaccord Genuity, and Berenberg Capital. The agreement is for the sale of its class A common stock.
MicroStrategy announced that the proceeds from the MSTR stock sale would serve various general corporate purposes. This includes acquiring more Bitcoins and providing working capital.
In Q2, MicroStrategy made a significant addition to its Bitcoin holdings, purchasing a total of 12,333 Bitcoins valued at $364.1 million. This marked the company’s second-largest BTC purchase in a single quarter since Q2 2021.
CFO’s Statement:
During the Q2 earnings call, MicroStrategy’s Chief Financial Officer, Andrew Kang, highlighted that the proceeds from the stock sale might be utilized for general corporate purposes. This could encompass buying more Bitcoin and potentially repurchasing or repaying their outstanding debt.
MicroStrategy’s Bitcoin Investments Turn Profitable
Earlier this week, the price of Bitcoin (BTC) faced selling pressure but later shot up to $30,000 levels on Tuesday.
MicroStrategy’s average BTC holding cost is currently at $29,672 per Bitcoin, making the company’s entire $4.53 billion investment in Bitcoin profitable.
Chairman’s Statement:
MicroStrategy Chairman, Michael Saylor, shared the company’s objective to generate incremental Bitcoin for shareholders through intelligent financings and operations.
In the second quarter, the price of Bitcoin rose by 7% to reach $30,390, following a significant surge of nearly 72% in the first quarter. However, during the second quarter of the previous year, Bitcoin experienced a sharp decline of 59%, dropping to $18,731.
MicroStrategy, considered a proxy for Bitcoin by many investors, saw little change in its share price, closing at around $434 after regular trading hours. In 2021, the stock reached an all-time high of $1,315 but dropped by 74% in 2022. This year, it has more than tripled in value.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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