Microstrategy Plans To Buy 500 Million Worth Of Btc

 Microstrategy Plans To Buy 500 Million Worth Of Btc

MicroStrategy Plans To Buy $500 Million Worth Of BTC

MicroStrategy is a famous Bitcoin whale and is very popular among the cryptocurrency community. Their recent SEC filing has revealed a rather interesting piece of information - MicroStrategy plans to buy $500 million worth of Bitcoin (BTC). That's almost half a billion dollars, and purchases of this size will most definitely push the coin's prices higher.

MicroStrategy Holds 130,000 Bitcoin

MicroStategy is a public software company, but that's not the source of its popularity. The company is one of the largest holders of Bitcoin, with around 130,000 coins in its portfolio. Now it seems that the company is ready to spend more money on the purchase of Bitcoin - This move will increase their portfolio exposure to the BTC and will also boost the investor's trust along the way.

To raise funds for buying BTC, the company plans to sell $500 worth of common stock (class A). In a recent filing, the company revealed that it could use this money for the purchase of additional Bitcoin (BTCs).

The filing also stated that MicroStrategy would sell these Bitcoin (BTC) for cash if the market fluctuates. If this happens, the company will even be willing to sell its BTC below the original purchasing price.

Saylor is the CEO of MicroStrategy, and under his guidance, the company has amassed 130,000 Bitcoin. If the recent purchase goes through, the company will add an additional 24,000 Bitcoin to its holdings.

During the 2nd quarter of 2022, the non-cash digital impairment charge of Microstrategy was $917 million approximately. For now, the company has expressed no plans for the trading of its Bitcoin holdings. However, the company could engage in selling some of the BTC to generate quick cash.

Experts believe that the recent price action in BTC is very reassuring. They also believe that the recent moves in BTC point towards a potential bullish rally.

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