Bitcoin whale MicroStrategy reveals plan to scoop up $500 million in BTC

MicroStrategy’s recent SEC filings show that the company plans to sell $500 million in stock to fund Bitcoin purchases.
MicroStrategy has acquired 130,000 Bitcoins since 2020, making it one of the largest public holders of the asset.
Analysts predict a rally to $23,000 as Bitcoin extends its gains.

Ekta Mourya FXStreet

The largest public holder of Bitcoin is ready to scoop up more BTC. Based on MicroStrategy’s latest SEC filing, the firm is ready to acquire $500 million in BTC.

Also read: Ethereum Merge knocking on the door, 30,000 blocks away

MicroStrategy is set to buy $500 million worth of BTC

MicroStrategy, a publicly traded software company is currently the single largest corporate holder of Bitcoin. The firm has nearly 130,000 Bitcoin in its portfolio and a month after Saylor’s move from CEO to Executive Chairman, MicroStrategy is ready to buy more Bitcoin.

In a filing with the SEC on Friday, MicroStrategy revealed an agreement with investment bank Cowen & Co to sell $500 million in shares of its Class A common stock to raise funds for acquiring more BTC. The firm said, “We may use the net proceeds from this offering to purchase additional Bitcoin,” in the filing.

MicroStrategy is likely to convert Bitcoin into cash in case of market fluctuations. The filing reads:

Future fluctuations in Bitcoin trading prices may result in our converting Bitcoin purchased with the net proceeds from this offering into cash with a value substantially below the net proceeds from this offering.

Under Saylor’s regime as CEO of the firm, MicroStrategy has accrued a sizable Bitcoin treasury of 130,000 BTC. An addition of nearly 24,000 BTC would increase the worth of holdings to 154,000 BTC worth $3.2 billion at the current price.

In Q2 2022 MicroStrategy reported a non-cash digital impairment charge of $917.8 million. MicroStrategy has no plans to engage in trading its Bitcoin. The firm may sell BTC to generate cash for treasury management purposes.

Analysts predict rally in Bitcoin price

Phoenix Ashes, a crypto analyst and trader, argues that BTC’s recent price moves are impressive. The asset’s momentum is falling bit by bit. If Bitcoin holds steady above $20,700, a rally to $23,000 is likely.

BTC-USDT price chart

Author

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.