MicroStrategy could sell up to $500 million in class A common stock and buy more Bitcoin

MicroStrategy plan to sell up to $500 million of its Class A common stock and that amount could be used to buy more Bitcoin, according to Friday filing with the U.S. Securities and Exchange Commission (SEC).

“We intend to use the net proceeds from this offering for general corporate purposes, including the acquisition of bitcoin, unless otherwise indicated in the applicable prospectus supplement. We have not determined the amount of net proceeds to be used specifically for any particular purpose”, the filing said.

“We believe that bitcoin is attractive because it can serve as a store of value, supported by a robust and public open-source architecture, that is untethered to sovereign monetary policy and can therefore serve as a hedge against inflation in the long term. We also believe that bitcoin offers additional opportunity for appreciation in value with increasing adoption due to its limited supply. In addition, we believe that our bitcoin acquisition strategy is complementary to our enterprise analytics software business, as we believe that our bitcoin and related activities in support of the bitcoin network enhance awareness of our brand and can provide opportunities to secure new customers for our analytics software offerings. We are also exploring opportunities to apply bitcoin-related technologies into our software offerings”, said the business strategy portion of the filing.

As of September 8, 2022, MicroStrategy held approximately 129,699 bitcoins that were acquired at an aggregate purchase price of $3.977 billion and an average purchase price of approximately $30,664 per bitcoin, inclusive of fees and expenses.

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