MicroStrategy Plans $1B Stock Offering to Buy Bitcoin

MicroStrategy has filed an application for a $1 billion securities offering of its class A common stock MSTR. The company will use the money for “general corporate purpose, including the acquisition of Bitcoin.”

MicroStrategy’s Latest Capital Raise  

MicroStrategy is planning yet another Bitcoin purchase.



Hours after completing a $500 million raise in corporate bonds to add to its holdings of the digital asset, the business intelligence firm filed for a new “securities offering” worth $1 billion with the SEC. The registration explained that the sale would be for its NASDAQ-listed MSTR shares, which would be used for “general corporate purpose, including the acquisition of Bitcoin.” 

MicroStrategy has partnered with an investment bank, Jefferies LLC., as the intermediary under an Open Market Sale Agreement (the “sales agreement”). 



The filing pointed out Bitcoin’s price volatility, noting that it “may significantly influence” the price of MSTR. MicroStrategy’s investments in BTC have turned MSTR shares into a pseudo-Bitcoin ETF. Its shares have closely followed the price of Bitcoin this year.

In total, the firm has raised debt in bonds and convertibles to the tune of $2.1 billion since last year to invest in Bitcoin. The firm’s 2020 investment is worth $3.6 billion at current prices, with $500 million on the sidelines for additional BTC.

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