MicroStrategy is unstoppable in what it has become accustomed to doing in the last year – buying bitcoin in any way it can. Now, according to documents submitted to the US Securities and Exchange Commission (SEC), the company is proposing a public offering of Class A common stock through an Open Market Sale Agreement. This way, the company can sell shares from time to time, depending on its needs.


The document submitted states the intention of the company: “We intend to use the net proceeds from the sale of any Class A common stock offered under this prospectus for general business purposes, including the acquisition of bitcoin.”




While MicroStrategy does not seem to be adamant about exclusively allocating funds to bitcoin markets, we must not overlook what has been happening in the last year. The company already owns 92.079 BTC ($3.7 billion), which is the bulk of its portfolio. Last week, it sold $500.000.000 worth of corporate bonds, which is added to the company’s reserves. However, with these moves, risks are created and are also mentioned in the submitted documents.


“The accumulation of our bitcoin reserves reinforces the risks involved in the bitcoin acquisition strategy. Serving our debt will require a significant amount of cash and we may not have enough cash flow from our business to pay off our debt.”


Of course, every company faces risks, but MicroStrategy seems to live through them. From the initial purchase of the first $21.454 bitcoin prow $11.653 last August, the price of the cryptocurrency skyrocketed, initially to $64.000 in April, before falling to $33.500 in June.


A further reduction in the value of the cryptocurrency would also drop the share price. “The bitcoins we hold offer less liquidity than our existing cash and cash equivalents and may not be able to serve as a source of liquidity for us to the same extent as cash and cash equivalents.”