MicroStrategy seeks raising $2b to buy more Bitcoin

MicroStrategy aims to raise $2 billion by selling its Class A shares to buy more Bitcoin and pay off debt.

MicroStrategy, the world’s largest Bitcoin (BTC) holder, filed a regulatory filing on August 1, seeking to raise billions of dollars worth of capital to double down on its crypto strategy as Bitcoin shows no signs of slowing down.

In a regulatory filing with the U.S. Securities and Exchange Commission, the Virginia-based company said it plans to raise $2 billion by selling its Class A shares. While the exact timeline for the sale of those shares was not disclosed, the filing notes that the proceeds will be used for “general corporate purposes, including the acquisition of Bitcoin.”

“Except as otherwise provided in the applicable prospectus supplement, we intend to use the net proceeds from the sale of any shares of Class A common stock offered under this prospectus for general corporate purposes, including the acquisition of bitcoin.”

MicroStrategy

The company also did not specify how much of the proceeds would be used for Bitcoin purchases, saying it did not specify the amount of net proceeds that would be “used specifically for a specific purpose.”

MicroStrategy wants to buy more Bitcoin

The filing coincides with the release of MicroStrategy’s Q2 financial results. The company reported acquiring 12,222 BTC during the quarter, spending more than $805 million at an average price of $65,880 per BTC. The company’s latest acquisition brings its total Bitcoin holdings to 226,500 BTC acquired at a cumulative cost of $8.3 billion as of July 31. Additionally, MicroStrategy announced a new KPI, “BTC Yield,” targeting 4-8% annual returns over the next three years.

Despite MicroStrategy’s encouraging plans for its Bitcoin policy, the company’s software business underperformed in Q2, generating $111.4 million in revenue, according to Bloomberg, falling short of analysts’ expectations of $119.3 million. The company’s net loss was around $102 million, while net income was $22.2 million. Following the financial report, MicroStrategy shares (MSTR) fell more than 6.3% to $1,511, according to Google Finance.

MicroStrategy has consistently used stock sales to fund its Bitcoin purchases. In late 2023, the company sold $750 million worth of stock with the intention of purchasing more Bitcoin. Subsequent reports confirmed multimillion-dollar purchases of the cryptocurrency, reinforcing its commitment to its Bitcoin-centric strategy.