MicroStrategy has announced plans to sell its class A shares to raise up to $2 billion, with the intent to purchase more Bitcoin and for other general corporate purposes. The Virginia-based business intelligence firm made the disclosure in a regulatory filing with the U.S. Securities and Exchange Commission. However, the company did not specify a timeline for the share sales or how much of the proceeds would be allocated to buying Bitcoin.
This move follows a recent fundraising effort in June, where MicroStrategy initially announced a $500 million offering of unsecured senior convertible notes to purchase additional Bitcoin. The offering was quickly upsized to $700 million, according to reports.
MicroStrategy, led by co-founder and Bitcoin advocate Michael Saylor, is the largest public holder of Bitcoin. The company currently holds approximately 226,500 Bitcoin, valued at over $14 billion, subject to market fluctuations. MicroStrategy positions itself as the world’s first Bitcoin development company, focusing on the growth of the Bitcoin network through financial market activities, advocacy, and technology innovation.
Despite its heavy investment in Bitcoin, MicroStrategy’s software business has faced financial challenges. The company recently reported a second-quarter net loss of $102.6 million, or $5.74 per share. This marks the second consecutive quarterly loss for the company, raising concerns among analysts about its cash flow situation.
The company’s aggressive Bitcoin accumulation strategy underscores its commitment to the cryptocurrency, even as it navigates financial difficulties in its core software business.
