Bitcoin ‘Whale’ MicroStrategy Files For $1B Share Sale

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MicroStrategy, the foremost bitcoin “whale” of the corporate world, has filed for a share offering to raise as much as $1bn on the public markets. The filing comes barely days after the company sold $500mn worth of bonds wholly to buy bitcoin.

  • This time around, the proceeds from MicroStrategy’s share sale aren’t earmarked to buy bitcoin but for “general corporate purposes”, which the company though said may include buying bitcoin. 
  • For the share sale, MicroStrategy filed a “shelf” registration with the US SEC. “Shelf” in this case means filing for a share sale up to two years before it actually takes place, with no certain intent for an immediate sale but anytime in the 2-year window when markets are optimal.
  • This is the first time MicroStrategy is holding a dedicated share offering in years. For the large amount of cash it raised to buy bitcoin, they were all corporate bonds. 
  • MicroStrategy’s $1bn share sale just looks like the company capitalizing on the attention it gained in the past year as a crypto “whale” that sent its stock surging. For reference, its stock has risen from around $120 in June 2020 to $610 now a year after.
  • MicroStrategy and its longtime CEO Michael Saylor have been major promoters of bitcoin in the crypto world. At this time, the business intelligence software company holds 92k BTC worth nearly $3.7bn, excluding the $500mn it recently raised to buy more.

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