The cryptocurrency market has been falling and falling this year. However, MicroStrategy, known as the “Big Brother Stud” in the currency circle, not only does not sell, but also wants to buy more bitcoins.
Last week, the business software company filed a filing with the U.S. Securities and Exchange Commission (SEC) stating that MicroStrategy had reached sales agreements with two prominent investment banks, Cowen and BTIG, to sell up to $500 million in stock to raise funds to buy more more bitcoins.
MicroStrategy said the net proceeds from the stock offering will be used for general corporate purposes, including the purchase of bitcoin, noting that “future volatility in bitcoin’s trading price may prompt us to convert the bitcoin purchased in the net proceeds of this offering into cash.”
MicroStrategy’s warning came as bitcoin hovered below the $20,000 mark for most of last week, well below its all-time high of $69,000 set in November, according to CoinGecko.
As of June 28, MicroStrategy is the world’s largest listed company holding bitcoin, holding a total of 129,699 bitcoins, with a total purchase cost of $3.98 billion for all bitcoins, and a market value of $2.451 billion. To focus on buying more bitcoin, Michael Saylor stepped down as CEO of MicroStrategy last month to become executive chairman of the board.
For the past two years, MicroStrategy has done “everything” in order to raise money to buy bitcoin. In addition to selling $1 billion in stocks last June, it also issued $500 million in “junk bonds” , and even used bitcoin as collateral to obtain about $200 million in term loans from banks, and then buy more Bitcoin.
In May of this year, despite the sell-off sweeping the cryptocurrency market, Michael Saylor remained bullish on Bitcoin. When asked if he had a target price to sell Bitcoin, he responded: “No, we are involved for the long term. Our strategy is to buy bitcoin and keep holding it.”