Bitcoin-based MicroStrategy to sell common stock worth $500,000,000 through collaboration with agents
MicroStrategy, an institutional Bitcoin (BTC) buyer, has entered into an agreement with two agents Cowen and Company and BTIG. with the aim of selling its aggregated class A common stock with a valuation of $500,000,000, as unveiled by a Securities and Exchange (SEC) filing, according to insights from Cointelegraph.
As per Cointelegraph, Michael Saylor, co-founder, MicroStrategy, has accumulated a sum total of close to 129,699 BTC over a number of years, at an approximate purchase price of $3.977 billion. Despite the presence of market uncertainties, the business analytics software firm carries on pursuing its objective of getting more BTC through sale of company stocks.
“We intend to use the net proceeds from the sale of any class A common stock offered under this prospectus for general corporate purposes, including the acquisition of bitcoin, unless otherwise indicated in the applicable prospectus supplement,” the filing stated.
On the basis of information by Cointelegraph, purchase of the dip is necessary for MicroStrategy as the platform’s BTC reserve has fallen at an aggregate value of close to $2.8 billion, which lead to a loss of over one billion dollars, as mentioned by Bitcoin Treasuries data. Retrospectively, on the day of the filing, Cointelegraph Markets Pro and Trading View stated that BTC/USD’s price went up by 11% to near about $21,500.
Moreover, Cointelegraph noted that the Federal Bureau of Investigation (FBI), along with federal agencies CISA and MS-ISAC, told US citizens to give information on the tracking of the whereabouts of the hackers. FBI has approached the citizens to report on information around ransomware attackers, which includes Bitcoin wallet information, ransom noted, internet protocol (IP) addresses, among others. Behaviour from bad actors have shown their preference towards fiat currency to conduct illicit activities over BTC on account of the blockchain’s immutable nature to allow authorities record crimes with ease.
(With insights from Cointelegraph)
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