MicroStrategy may sell up to $500 million in class A ordinary stock and may purchase more bitcoin.
According to a new prospectus filed with the Securities and Exchange Commission (SEC), the company has entered into an arrangement with agents Cowen and Company and BTIG to sell up to $500 million in shares with the potential goal of purchasing additional bitcoin.
It was stated in the filing that “we aim to utilize the net proceeds from this offering for general company objectives, including the purchase of bitcoin,” regardless of whether or not a specific use was specified.
Michael Saylor, the former CEO of MicroStrategy and a bitcoin bull, started adding bitcoin to the company’s balance sheet. The billionaire left the firm one month ago but continues to lead the investment committee.
The next CEO, Phong Le, said that the company still intends to keep bitcoin for the long term. MicroStrategy disclosed impairment costs of more than $900 million as a result of the broader crypto market decline and the falling price of bitcoin.
The filing’s business plan section said, “We have not established any precise objective for the quantity of bitcoin we aim to hold, and we will continue to watch market circumstances in evaluating whether to participate in new financings to buy more bitcoin.”
Saylor is also being sued by the attorney general of Washington, D.C. for suspected tax fraud. The lawsuit also names MicroStrategy for allegedly assisting Saylor.
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