More Bitcoin! MicroStrategy, unfazed by the bear market, wants to buy more cryptocurrencies

Bitcoin’s price gained momentum on Saturday, rapidly climbing more than 10% a barrel above the $ 21,000 level.

Market sentiment turned more bullish following a request from MicroStrategy’s US Securities and Exchange Commission to sell $ 500 million worth of MSTR shares in order to buy additional Bitcoin.

As of this writing, Bitcoin is trading at $ 21,434, up 8.3% over the past seven days, according to Coingecko data.

The publicly traded software company holds over 129,700 BTC, making it the largest corporate holder of the most popular cryptocurrency in the world.

MicroStrategy revealed in a prospectus filed with the SEC on Friday that it entered into an agreement with investment bank Cowen & Co. to dump up to half a billion dollars in MSTR Class A common stock.

Former MicroStrategy CEO Michael Saylor. Image: Bitcoin Magazine

Which bear market? MicroStrategy wants more Bitcoin

It’s the first tangible indication that MicroStrategy founder Michael Saylor, who recently stepped down as CEO to become executive chairman and focus on buying bitcoin, is not abandoning his ambitious plan to turn the company into a cryptocurrency proxy. .

MicroStrategy, which now has Phong Le as its new CEO, reported a second-quarter loss of more than $ 1 billion after BTC’s price hit an all-time low.

Since 2020, Saylor has used the funds raised through the sale of stocks and bonds to acquire approximately 130,000 BTC for an amount of over $ 2 billion.

The former CEO, who co-founded MicroStrategy in 1989, is still executive president today.

MicroStrategy said in a filing that the company can use the net proceeds from this offering to acquire additional Bitcoin.

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MicroStrategy shares are linked to the BTC price

The company issued a warning about Bitcoin’s fluctuation and abrupt price movements, which resulted in the largest cryptocurrency by market cap earlier this week trading below $ 20,000.

According to data from CoinMarketCap, this number is a far cry from the all-time high of $ 68,789 in November last year.

In light of this year’s market volatility, MicroStrategy’s stock was pegged to the price of Bitcoin, with a $ 1.2 billion loss on its Bitcoin bet. On Friday, however, the shares were up 12% as BTC was up nearly 10%.

Microstrategy owns 129,699 bitcoins, which it has acquired for a total of $ 3.9 billion and an average price of around $ 30,666 per coin. In fact, MicroStrategy owns 14,590 BTC and its subsidiary, MacroStrategy LLC, owns 115,111 units.

The District of Columbia recently filed a lawsuit against MicroStrategy and Saylor for alleged tax evasion on Saylor’s earnings in the district.

BTC total market cap at $413 billion on the daily chart | Source: TradingView.com

Featured image from Nairametrics, chart from TradingView.com

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