Key takeaways:
- MicroStrategy is selling $500 million of its class A common stock at $0.001 per share
- The price of MicroStrategy stock (MSTR) has seen considerable positive market movements after the announcement
- The company controls 129,698 BTC, worth roughly $2.9 billion at current market rates
MicroStrategy has spent nearly $4 billion on BTC purchases to date
According to a September 9 filing with the US Securities and Exchange Commission (SEC), MicroStrategy is likely gearing up to further bolster its Bitcoin portfolio. The company is offering shares of their class A common stock at $0.001 per share, with an aggregate price of $500 million.
In the filing, MicroStrategy listed primary risks associated with its high exposure to Bitcoin, including its vulnerability to crypto market volatility, uncertainty surrounding digital asset regulation, and liquidity concerns.
MicroStrategy is a publicly traded company under the ticker symbol MSTR on Nasdaq. Due to its outsized Bitcoin portfolio, MicroStrategy has been widely perceived as a sort of Wall Street-traded Bitcoin spot exchange-traded fund (ETF).
Going by the Bitcoin Treasuries data, MicroStrategy has spent $3.98 billion on a total of 129,698 Bitcoin over several major investments. With the current market rate of Bitcoin of approximately $22,500, the company is down almost $1 billion on its crypto investment to date. For context, the company’s market cap currently stands at $2.9 billion.
The $500 million stock sale announcement has apparently been positively received by the market – the price of MicroStrategy stock (MSTR) rallied by nearly 30% in the past couple of days, increasing from $204 on September 7 to $262 before the market close on September 12.
In related news, the former CEO of MicroStrategy and acting executive chairman, Michael Saylor, has been accused of evading $25 million in taxes by the District of Columbia’s attorney general. The AG is seeking $100 million in penalties and unpaid taxes from the tech billionaire.
