Word’s biggest holder of Bitcoin, business intelligence firm MicroStrategy [MSTR] has remained unperturbed by the market upswings as it looks to stockpile more BTC. A filing with the SEC revealed that the firm has signed a deal with investment bank Cowen & Co. to sell $500 million in Class A stock.
While there isn’t any specific date for the potential sales, the US-based software firm stated that it plans to direct the net proceeds to purchase additional Bitcoins.
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 firm also took note of the BTC price volatility and the resultant implications of its move.
“Future fluctuations in Bitcoin trading prices may result in our converting Bitcoin purchased with the net proceeds from this offering into cash with a value substantially below the net proceeds from this offering,” the company wrote.
In August, MicroStrategy co-founder Michael Saylor stepped down from his role as chief executive officer title to focus more on his Bitcoin advocacy efforts.
Interestingly, that was the same day the Tysons Corner, a Virginia-based entity also co-founded by Saylor in 1989 reported a loss of more than $1 billion due to the second-quarter plunge in the price of the cryptocurrency.
That being said, Saylor continues to serve as executive chairman.
A few days ago, there were rumors of MicroStrategy moving over 200k BTC to exchanges.
More trouble for Bitcoin?
A popular influencer CryptoVinco was among the first people to make the claim on Twitter along with a screenshot of a series of transactions carried out by the whale address.
The pseudonymous influencer asked the community to expect a market “bloodbath” when MicroStrategy sells off the BTC. Twitteratis gave mixed reactions as some users disagreed with CryptoVinco saying that the address does not belong to MicroStrategy.
On the price front, Bitcoin bounced back by 16%, as the largest cryptocurrency by market cap traded above $20,000 earlier this week. However, investors put out a word of caution saying this could just be a typical “short covering and a squeeze”.