MicroStrategy, a cryptocurrency government company, keeps coming up with new ways to purchase more Bitcoin. The business made the announcement on Friday that it had determined the price of its fresh stock, STRK, and that it would use it to raise money to acquire yet more Bitcoin for its treasury.
The company hopes to use the proceeds from STRK’s sale to buy Bitcoin and will sell for$ 80 per share. Michael Saylor, co-founder and chairman of MicroStrategy, announced on X, formerly Twitter, that the company had increased the funding from$ 250 million to$ 584 million.
In a statement, the agency said that it expects to end up with online money of$ 563.4 million from the purchase, which will go towards “general business functions, including the merger of Bitcoin and for working capital”.
In order for the company to have more resources to invest in the cryptocurrency, the company’s shareholders just last week approved a 30x increase in the number of Class A popular stocks. The reasoning is that with more stocks on the market, there will be more profits, and thus more money to buy Bitcoin.
MicroStrategy last year announced a” 21/21 Plan” to raise$ 42 billion to buy even more Bitcoin. The program would see the company raise$ 21 billion via capital, with another$ 21 billion coming by selling fixed income securities.
The reason for this is that the business has switched from selling data analysis program to securitizing Bitcoins: It purchases and holds the bitcoin, while investors purchase MicroStrategy shares to gain exposure to the orange coin without really handling it.
The business has also incurred a sizable loan in this regard.  ,
And it’s difficult, suggest some analysts—but so far, so good: MSTR was trading for$ 14.44 the day the company announced its first Bitcoin get in August 2020. Nasdaq data shows it’s today trading for$ 340—a 2, 250 % increase.
MicroStrategy now holds 471, 107 Bitcoin, or over$ 48 billion value at the current rate.
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