MicroStrategy Seeks Raising $2b To Buy More Bitcoin

MicroStrategy is seeking to raise $2 billion by selling its class A shares to buy more Bitcoin as well as repay debt.

MicroStrategy, the world’s largest public Bitcoin (BTC) holder, filed a regulatory filing on Aug. 1, seeking to raise billions worth of capital to double down on its crypto strategy as Bitcoin shows no signs of slowing down.

In the regulatory filing with the U.S. Securities and Exchange Commission, the Virginia-headquartered company said that it plans to raise $2 billion by selling its class A shares. While the exact timeline for selling these shares was not disclosed, the filing reads that the proceeds will be used for “general corporate purposes, including the acquisition of Bitcoin.”

“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 indicated in the applicable prospectus supplement.”

MicroStrategy

The company also did not specify how much of the proceeds will be used for Bitcoin purchases, saying it has not determined the amount of net proceeds “to be used specifically for any particular purpose.”

The filing coincides with the release of MicroStrategy’s Q2 financial results. The company reported acquiring 12,222 BTC during the quarter, spending over $805 million at an average price of $65,880 per BTC. The company’s latest acquisition brings its total Bitcoin holdings to 226,500 BTC, acquired at a cumulative cost of $8.3 billion as of July 31. Additionally, MicroStrategy unveiled a “BTC Yield,” a new KPI targeting annual returns of 4-8% over the next three years.

Despite MicroStrategy’s encouraging plans regarding its Bitcoin policy, the company’s software business underperformed in Q2, posting $111.4 million in revenue, below analysts’ expectations of $119.3 million, per Bloomberg. The company’s net loss was around $102 million, while its net income was at $22.2 million. Following the financial report, MicroStrategy shares (MSTR) plunged by over 6.3% to $1,511, data from Google Finance shows.

MicroStrategy has consistently used share sales to fund its Bitcoin purchases. In late 2023, the company sold $750 million worth of shares with the intention of buying more Bitcoin. Subsequent reports confirmed multi-million dollar acquisitions of the cryptocurrency, reinforcing its commitment to its Bitcoin-centric strategy.