Saylor plans a $750M stock sale, may buy more Bitcoin

US-based software development company MicroStrategy announced its intention to raise $750 million through a stock sale. MicroStrategy revealed in a filing to the Securities and Exchange Commission that they might utilize the proceeds to purchase more Bitcoin.

MicroStrategy entered into a sales agreement with three companies—Cowen and Company, Canaccord Genuity, and Berenberg Capital—to sell their class A common stock. During a second-quarter earnings call, MicroStrategy’s Chief Financial Officer, Andrew Kang, mentioned that the proceeds from the proposed sale will be for various general corporate purposes, including acquiring more Bitcoin and working capital, similar to their previous programs.

MicroStrategy currently holds 152,800 Bitcoin, valued at $4.5 billion. In the second quarter, it acquired 12,333 Bitcoin, and in July, it added another 437.

Chairman Saylor told investors that MicroStrategy’s objective is to generate incremental Bitcoin for their shareholders, which can be achieved through cash flow from the business or intelligent accretive financings of equity, debt, or other intelligent operations.

Following the announcement, the price of Bitcoin increased by nearly 2%, climbing from $29,200 to $29,771 at the time of writing. The ongoing Bitcoin rally significantly benefited MicroStrategy’s shares, resulting in a rise by almost 200% since the beginning of this year. According to data from Google Finance, MSTR shares surged from $145.02 per share on January 3 to $434.98 at the time of publication.