More Bitcoin! MicroStrategy, unfazed by Bear Market, wants to buy more cryptocurrency

More Bitcoin!  MicroStrategy, unfazed by Bear Market, wants to buy more cryptocurrency


Bitcoin price gained momentum on Saturday, quickly surging more than 10% to cross the $21,000 level.

Market sentiment has become more bullish as a result of the US Securities and Exchange Commission’s submission of MicroStrategy to sell $500 million worth of MSTR shares in order to purchase additional Bitcoin.

As of this writing, Bitcoin is trading at $21,434, up 8.3% in the past seven days, according to data from Coingecko.

The publicly traded software company owns more than 129,700 BTC, making it the world’s largest and most popular cryptocurrency holder.

MicroStrategy revealed in a prospectus filed with the Securities and Exchange Commission on Friday that it has entered into an agreement with investment bank Cowen & Co. to offload up to half a billion dollars in MSTR Class A common stock.

Former MicroStrategy CEO Michael Saylor. Image: Bitcoin Magazine

What is a bear market? MicroStrategy wants more Bitcoin

This is the first concrete indication that MicroStrategy founder Michael Saylor, who recently stepped down as CEO to become CEO and focus on buying bitcoin, is not giving up on his ambitious plan to turn the company into a crypto agent.

MicroStrategy, in which Fong Lu is now the new CEO, reported a second-quarter loss of more than $1 billion after the price of bitcoin hit a record low.

Since 2020, Saylor has used the funds raised through the sale of stocks and bonds to acquire approximately 130,000 BTC to the value of more than $2 billion.

The former CEO, who co-founded MicroStrategy in 1989, serves as CEO to this day.

MicroStrategy stated in a filing that the company may use the net proceeds from this offering to obtain additional Bitcoin.

MicroStrategy stock is pegged to the price of BTC

The company issued a warning about Bitcoin’s volatility and sudden price movements, which caused the largest cryptocurrency by market capitalization to trade below $20,000 earlier this week.

According to CoinMarketCap data, that number is a far cry from an all-time high of $68,789 in November of last year.

In light of the volatility of the market this year, MicroStrategy stock has become pegged to the price of Bitcoin, resulting in a loss of $1.2 billion in the Bitcoin bet. However, on Friday, stocks rose by 12% as BTC rose about 10%.

Microstrategy owns 129,699 bitcoins, which they acquired for a total of $3.9 billion and an average price of about $30,666 per coin. In fact, MicroStrategy owns 14,590 BTCs and its subsidiary MacroStrategy LLC owns 115,111 units.

The District of Columbia recently sued MicroStrategy and Saylor for allegedly evading taxes on Saylor’s earnings in the district.

BTC total market cap at $413 billion on the daily chart | Source: TradingView.com

Featured image from Nairametrics, chart from TradingView.com



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