MicroStrategy's filing with the United States Securities and Exchange Commission (SEC) to sell $500 million of MSTR shares through investment bank Cowen & Co and BTIG LLC to buy more Bitcoin (BTC) succeeded in driving bullish sentiment in the crypto market.
Explained, the software company continued its BTC acquisition strategy despite the resignation of Michael Saylor as CEO, replaced by Phong Le as the new CEO of MicroStrategy.
In fact, the company reported a loss of over $1 billion in the second quarter after the price of BTC plummeted to record lows.
For the record, MicroStrategy holds 129,699 BTC worth $3.977 billion and an average purchase price of $30,664 per BTC, even 14,589 BTC is held by MicroStrategy and 115,110 BTC is held by its subsidiary MacroStrategy LLC.
Through the filing, the company intends to use the proceeds from this offering for public corporate purposes as well as the acquisition of BTC, but MicroStrategy has not yet specified the amount of net proceeds to be used specifically.
Now, the MSTR share price is $261.97 which is up almost 11.77%. Not only that, the company's BTC acquisition makes the stock price move in line with the BTC price, but the stock price may fall after the stock offering.
For context, the price of BTC is trading at $21,575 which is up 7% in the past 24 including experts believe that BTC is turning bullish because the price can rise to $23,500.
