Hours after disclosing that it completed a $500 million debt offering to fuel additional bitcoin purchases, the publicly traded MicroStrategy signaled in an SEC filing that it may sell as much as $1 billion worth of its stock over time.
MicroStrategy Launches “At the Market” Securities Offering for Flexibility to Sell Up to $1 billion of its Class A Common Stock Over Time $MSTRhttps://t.co/qouK8pFmBF— Michael Saylor (@michael_saylor) June 14, 2021
Details of the offering were included in the firm's S-3 filing, published Monday.
In terms of the use of proceeds, MicroStrategy indicated that it may use the funds gleaned from any stock sales for a variety of reasons, including the acquisition of more bitcoin.
"We intend to use the net proceeds from the sale of any class A common stock offered under this prospectus for general corporate purposes, including the acquisition of bitcoin, unless otherwise indicated in the applicable prospectus supplement. We have not determined the amount of net proceeds to be used specifically for any particular purpose. As a result, management will retain broad discretion over the allocation of the net proceeds of any offering."
The timing is notable given that financial news reports ahead of the completion of the $500 million debt offering indicated broad interest, to the tune of $1.6 billion, for that particular deal.
MicroStrategy currently holds more than 92,000 BTC on its balance sheet, an amount worth roughly $3.7 billion.