The company does not outline terms of sale or the specific destination of the funds. The company’s corporate strategy gives high priority to the purchase and accumulation of bitcoin.
MicroStrategy keeps reinforcing its current bitcoin (BTC) purchasing strategy, with a new securities offering that would allow it to sell up to $ 1 billion in company stock over time.
Through a statement, the company headed by Michael Saylor announced the creation of a securities offer that would allow it to sell the amount indicated in class A common shares under the “at the market” modality, a kind of value offer with a modality that allows it to sell at market prices without predetermined values. The shares will meet their trading procedures through Jefferies LLC, an American investment bank founded in the 1960s.
The funds would not necessarily be destined for the purchase of the cryptocurrency but would serve for “general corporate purposes, including the acquisition of bitcoin,” as the text describes in its content.
Discretion Over the Allocation of net Proceeds from Offerings
MicroStrategy also stated that they have not determined the number of net proceeds that will serve specifically for any of those particular purposes. As a result, management will keep distance and broad discretion over the allocation of net proceeds from any offering.
Despite not indicating sale terms or specifying the amounts allocated to the purchase of bitcoin, the company’s strategy has the accumulation of funds in the cryptocurrency among its highest priorities.
These highlights come right after Saylor, CEO and founder of the business intelligence company, expressed through a report that they would allocate another $ 500 million of debt notes to acquire more BTC.
Currently, MicroStrategy is a publicly-traded company with the largest holding of bitcoins around the globe. With more than 92,000 bitcoins in its coffers, it is surpassed only by a private company (Block. One), an investment fund (Grayscale), and a country (Bulgaria) as the largest owners of BTC units on the planet, according to data from BitcoinTreasuries.
Double or Nothing is the Main Strategy
Since last year, Saylor has been doubling his bet on the accumulation of bitcoin. This sale of shares would be a new way to invest in the main cryptocurrency on the market, after making direct purchases, having issued debt, and offering exposure to BTC to its shareholders with a fund dedicated to bitcoin.
Although in the bitcoin world Saylor’s accumulation strategy achieved approval, there are those users who question his current position and the risk it would imply for the company.
Peter Schiff Stands on his Critics on Bitcoin
The investor, who has kept a solid stance against bitcoin and in favor of gold as a store of value, responded regarding the creation of this share offering. “You are really crazy. If Bitcoin is going to be as successful as you claim, MicroStrategy already has more than enough to make all of its shareholders rich, ”he wrote directly to Saylor.
Actions do not match your words. These are acts of desperation to prevent Bitcoin and its price] from crumbling down by purchasing as much as you can, ”Schiff concluded in its emission.
By:Jenson Nuñez
