MicroStrategy has revealed plans to sell its Class A common stock for up to $1 billion, with a portion of the proceeds potentially used to make further bitcoin purchases.

MicroStrategy Want More Bitcoin?

In a document filed with the US Securities and Exchange Commission on Monday, MicroStrategy said it will launch a market offering, which will enable the company to sell its Class A common stock for $1 billion over time.

According to the Form S-3 deposit, the proceeds from the sale can be used for various reasons, including buying more bitcoin.

The following is an excerpt from the document filed with the SEC:

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We intend to use the net proceeds from the sale of any Class A common stock offered under this prospectus for general corporate purposes, including the acquisition of bitcoin, unless otherwise specified in the applicable prospectus appendix.

We do not specify the amount of net proceeds to be used specifically for any particular purpose.

The new news comes hours after MicroStrategy completed the offering of the priority secured bond, through which MicroStrategy raised $500 million, with the company announcing that the money will be directed towards more bitcoin purchases.

As mentioned in the document, MicroStrategy said it owned 92,079 Bitcoin, worth $3.7 billion at the time of writing this article as of June 4, 2021.

According to MicroStrategy, bitcoins were acquired at an average price of $24,450, with the company saying there are plans to buy more.

MicroStrategy earlier announced the formation of a new subsidiary called “MacroStrategy LLC” which will own all of the bitcoins.

“Micro-Strategy” of the holders of Bitcoin:

Michael Saylor, CEO of MicroStrategy, is a well-known Bitcoin supporter.

He previously revealed that he has been acquiring bitcoin since June 2020 after discovering that owning shares in major tech companies has become futile.

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While MicroStrategy made its first bitcoin purchase last August, it has since been working to increase the amount of bitcoin in its own wallet.

According to the SEC filing, the company has no plans to conduct bitcoin trading but will hold the asset for the long-term. MicroStrategy’s statement reads as follows:

We view our Bitcoin holdings as long-term holdings, do not plan to engage in regular Bitcoin trading and have not hedged or entered into derivative contracts in connection with our Bitcoin holdings, although we may sell Bitcoin in future periods as needed to generate Cash for treasury management and for other general corporate purposes.

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