Michael Saylor’s Plan to Sell Additional Equity for Bitcoin Investment Proves Ultra Bullish For BTC

Late Tuesday, software developer MicroStrategy filed a prospectus supplement stating intentions to sell up to $750 million worth of stock with the intention to buy more Bitcoin, among other things.

“We intend to use the net proceeds from this offering for general corporate purposes, including the acquisition of bitcoin and working capital, and, subject to market conditions” the filing on the SEC site read, and that MicroStrategy had “not determined the amount of net proceeds to be used specifically for any of these purposes.”

Michael Saylor, the Executive Chairman of MicroStrategy, has been a very vocal proponent of Bitcoin, steadily increasing the company’s Bitcoin holdings regardless of market conditions. Saylor firmly believes as more and more people understand the promise of BTC, the price is set to skyrocket. He has made claims in the past of Bitcoin reaching 1 million US dollars per Bitcoin. He believes that all financial value worldwide would be eventually stored in Bitcoin.

MicroStrategy released its Q.2 report on the same day as the filing, revealing significant developments in its Bitcoin holdings. During the quarter, the company acquired 12,800 bitcoins at an average price of $28,233 per bitcoin, totalling $361.4 million. As of July 31, 2023, their total bitcoin holdings reached 152,800 bitcoins, acquired for a total cost of $4.53 billion, with an average price of $29,672 per bitcoin.

Despite a 1% year-over-year decrease in Total Revenues, which amounted to $120.4 million, the company saw positive growth in some areas. Software Licenses Revenues experienced a 4% increase year-over-year, amounting to $35.4 million, while Subscription Services Revenues surged by 42% year-over-year, totalling $19.9 million.

In the second quarter, MicroStrategy also reported an impairment charge of $24.1 million on its bitcoin holdings, reflecting a decline in bitcoin prices compared to the price at which the bitcoins were acquired. This charge is significantly lower than the impairment charges of $917.8 million in the year-ago quarter and $18.9 million in Q1.

Michael Saylor, who once called Bitcoin a “bank in cyberspace”, has amassed so much of it that MicroStrategy is now one of the largest holders of the number one cryptocurrency, among other big holders like the Winklevoss twins and enigmatic Bitcoin founder Satoshi Nakamoto.

Bitcoin had seemingly reacted to the filing and was inching close to the $30,000 mark, touching $29,987 before retracting to $29,095 at the time of writing, according to data from CoinMarketCap, still an impressive gain of 2.3% in 24 hours.

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• Source: https://zycrypto.com/michael-saylors-plan-to-sell-additional-equity-for-bitcoin-investment-proves-ultra-bullish-for-btc/