Microstrategy decided to sell company shares for an aggregate price of up to $500 million. According to a filing with the U.S. Securities and Exchange Commission, they contracted two global investment firms, BTIG and Cowen, as agents for this process. The filing stated
that in addition to the proceeds being used for "general corporate purposes," MicroStrategy would allocate part of the money to purchasing more Bitcoin.
A company started acquiring crypto in 2020 using money raised from stock and bond offerings, accumulating around 130,000 BTC valued at just over $2.7 billion. Yet, after a dramatic 70% fall in BTC price after tapping an all-time high of $68,900 in November, the company's Bitcoin value was greatly affected. In the second quarter, MicroStrategy reported a loss of about $1 billion alongside a $917.8 million impairment charge tied to a decline in the value of its Bitcoin stash.
Meanwhile, the crypto community has lauded this move, with many believing that the company's strategy to continue buying the cryptocurrency could keep providing a boost for crypto prices.