MicroStrategy Announces $1B Stock Offering With Plans To Buy More Bitcoin With Proceeds

What happened: Shares in business intelligence companies MicroStrategy Incorporated (NASDAQ: MSTR) rose over 15% on Monday after the company announced it would sell its $ 1 billion stock over time.

According to a SEC submission, the company plans to use a portion of the proceeds from the sale of its Class A common stock to purchase even more Bitcoin (CRYPTO: BTC).

However, the filing states that MicroStrategy is not yet required to determine the amount of net proceeds to be used specifically for a specific purpose.

“As a result, management retains a wide margin of discretion in the distribution of the net proceeds of an offer,” the company said in the filing.

Why it matters: The announcement of this share offering will be made shortly after the company completed a $ 500 million junk bond sale to buy even more bitcoin.

At the time of writing, MicroStrategy held up to 92,079 bitcoins in a newly formed subsidiary called MacroStategy LLC.

Also read: Elon Musk has no role on the Bitcoin Mining Council, founding members say

The company’s CEO, Michael Saylor, is widely regarded as one of the most optimistic Bitcoin proponents in the industry and is said to have convinced Tesla Inc (NASDAQ: TSLA) CEO Elon Musk buys Bitcoin.

“If you want to do your shareholders a $ 100 billion favor, convert this $ TSLA Balance from USD to BTC. Other companies in the S&P 500 would follow suit, and in time it would become a $ 1 trillion favor, ”Saylor told Musk Twitter.

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