bitcoin priceIt has gained momentum, resulting in a surge above the $21,000 level. The price, which was located at $ 19,300 levels, managed to rise to the levels of $ 21,575. According to the new statement from the MicroStrategy front, the company applied to the SEC to sell $500 million worth of MSTR stock to buy more Bitcoin, improving the market’s bullish outlook.
MicroStrategy Will Buy More Bitcoins
MicroStrategy On September 9, investment banks Cowen & Co. filed with the U.S. Securities and Exchange Commission (SEC). and presented a justification for selling $500 million of Class A shares of MSTR through BTIG LLC. The statement that the proceeds will be used for “general corporate purposes, including the purchase of Bitcoin” was included in the aforementioned justification.
The software company seems to continue its strategy of buying Bitcoin even after Bitcoin maximalist Michael Saylor stepped down from his job as CEO. Currently, Saylor serves as chairman of the board and will continue to focus on Bitcoin. Phong Le is the new CEO of MicroStrategy. In fact, the company reported losses of over $1 billion in the second quarter after the BTC price plunged to a record low.
Microstrategy has 129,699 Bitcoins acquired for a total of $3,977 billion and an average purchase price of $30,664 per token. In fact, 14,589 BTC is held by MicroStrategy and 115,110 BTC is held by its subsidiary MacroStrategy LLC.
“We plan to use the net proceeds from this offer for general corporate purposes, including the purchase of Bitcoin, unless the valid justification is attached,” the file states. The note, “We have not determined the amount of net income to be used specifically for any purpose” was also included in the same report.
As of September 9, MSTR stock price was up almost 11.77% to $261.97. In fact, the company’s BTC purchase moved the stock price relative to the BTC price. The stock price will likely decline after the stock offer.
Bitcoin (BTC) price is still trading below the key 200-WMA level of $23,000. However, it is possible that the announcement by MicroStrategy will push the price above 200-WMA.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.