Key Points
- MicroStrategy plans to raise $2 billion through selling its class A shares to buy more Bitcoin and repay debt.
- The company has not disclosed the exact timeline for the sale or the specific amount of the proceeds to be used for Bitcoin purchases.
MicroStrategy, the world’s largest public Bitcoin holder, has filed a regulatory document with the U.S. Securities and Exchange Commission. The company intends to raise $2 billion by selling its class A shares.
The exact timeline for the sale of these shares is yet to be disclosed. The raised funds will be used for “general corporate purposes, including the acquisition of Bitcoin,” as stated in the filing.
MicroStrategy’s Bitcoin Acquisition Strategy
MicroStrategy has not specified the exact portion of the proceeds that will be used for Bitcoin purchases. The company states that it has not yet determined the amount of net proceeds to be used specifically for any particular purpose.
The filing aligns with the release of MicroStrategy’s Q2 financial results. The company reported that it had acquired 12,222 Bitcoin during the quarter, spending over $805 million at an average price of $65,880 per Bitcoin.
MicroStrategy’s latest acquisition brings its total Bitcoin holdings to 226,500 Bitcoin, acquired at a cumulative cost of $8.3 billion as of July 31. The company also introduced a “BTC Yield,” a new KPI targeting annual returns of 4-8% over the next three years.
MicroStrategy’s Financial Performance
Despite the company’s encouraging plans for its Bitcoin policy, MicroStrategy’s software business underperformed in Q2. The company posted $111.4 million in revenue, falling short of analysts’ expectations of $119.3 million.
The company’s net loss was around $102 million, while its net income was at $22.2 million. Following the financial report, MicroStrategy shares plunged by over 6.3% to $1,511.
MicroStrategy has consistently used share sales to fund its Bitcoin purchases. In late 2023, the company sold $750 million worth of shares with the intention of buying more Bitcoin. Subsequent reports confirmed multi-million dollar acquisitions of the cryptocurrency, reinforcing its commitment to its Bitcoin-centric strategy.
