MicroStrategy holds the most bitcoin than any other corporate company. Its bitcoin portfolio has over 128,900 bitcoin with a value of nearly $2.6 Billion in today’s market. The publicly traded software company plans to purchase more in the coming days.
MicroStrategy to Sell Part of its Shares to Finance Bitcoin Acquisition
MicroStrategy informed the Securities and Exchanges Commission(SEC) of its plans to sell part of its shares worth over $500M to investment bank Cowen & Co. The sale plan comes in just three weeks after the company was sued for suspected fraud by Washington D.C Attorney General.
Attorney General Kari Racine accused MicroStrategy and its CEO of evading district taxes. Mr. Racine claimed that CEO Michael Saylor used the company to help him in tax evasion. The Attorney General’s office is seeking to recover about $100M in unpaid taxes and penalties.
A week later, Saylor left his role to become the Executive Chairman. Part of the MicroStrategy prospectus delivered to SEC read that it was considering buying more bitcoin from the sale proceeds. However, the company warned of BTC’s wild volatility that causes fast price changes.
The CoinGecko data shows that bitcoin traded above $68,000 in November but went below $20,000 in the past weeks. The software company added that future bitcoin price fluctuations might push it to convert into cash its bitcoin bought with the proceeds from sold shares, and the value could be lower than the actual proceeds obtained.
MicroStrategy Plans to Hold Bitcoin despite the Market Conditions
A few weeks before Saylor rose to the executive chairman position, MicroStrategy reported a depreciation value worth over $900 million in its digital asset in the 2nd quarter of 2022. However, the company seems unbothered by the current crypto market condition and insists that it plans to hold BTC for the long term.
In a statement, MicroStategy confirmed that it has no plans to trade its BTC, but it would only sell in case of corporate emergencies that need cash. Also, the company added that it did not have a specific target amount of bitcoin holdings and will continue to monitor the market conditions to determine if it can purchase more.
