MicroStrategy to Acquire Additional Bitcoins After $500M Stock Sales

Despite the dip in the price of Bitcoin, Business intelligence giant MicroStrategy Inc. has continued its acquisition of the digital currency.

According to a recent Form 8-K filing with the Securities and Exchange Commission (SEC), Microstrategy has entered an agreement with Cowen and Company and BTIG.

As per the agreement, the NASDAQ-listed company will sell $500 million worth of its MSTR shares to Cowen & Co. and BTIG, both of which are investment banks that focus on crypto-related stocks.

Afterward, proceeds from these sales will be channeled into general corporate purposes that include Bitcoin acquisition.

MicroStrategy and Saylor Keep Faith with Bitcoin.

The news comes weeks after co-founder Micheal Saylor left his role as the CEO – a position he has occupied since the inception of the firm in 1989 to focus on the firm’s BTC acquisition plans amongst other things. 

Under his leadership, MicroStrategy at different times stacked up its Bitcoin possession, making it the largest corporate holder of the largest cryptocurrency by market cap.

The corporate holder currently holds 129,699 BTC purchased at an average price of $30,664. The latest of its acquisitions came in June when it added another 480 BTC units to its pot. This means that the firm currently sits on an unrealized loss of over $1 billion 

Ex-CEO Saylor believes BTC ETF will replace Gold ETFs shortly, therefore the firm has stuck to its strategy of acquiring the digital currency especially when prices are down not minding the losses it has accrued thus far.

With predictions that Bitcoin’s price will crash after Ethereum’s planned Merge later in the month, it remains to be seen what happens to Saylor and Microstrategy’s bet on the digital currency.

While the “buy the dip” advocate has no plans to engage in regular trading or enter into a derivative contract with its Bitcoin holdings, it may sell some of its bitcoins to generate the cash needed for “treasury management and other general corporate purposes”.

Earlier in the month, the District of Columbia’s attorney general sued both Micheal Saylor and Microstrategy for tax evasion. The firm has since described the lawsuit as an overreach adding that it is a personal tax matter involving Mr. Saylor.