Software developer MicroStrategy (MSTR) plans to sell $500m worth of stock to fund Bitcoin (BTC) purchases.
The business intelligence company has become a corporate BTC vault and according to the US Securities and Exchange Commission (SEC) in a filing last week, the stock offering will be for “general corporate purposes, including the acquisition of bitcoin”.
Company founder Michael Saylor recently stepped down as CEO to take on the role of executive chairman with a strong focus on buying BTC with the hope of turning MicroStrategy into a crypto proxy.
Since 2020, Saylor has used funds from stock and bond offerings to purchase 130,000 BTC ($2bn).
Now, MicroStrategy’s stock has become tethered to BTC which has caused a $1.2bn loss on the BTC bet after this year’s market downturn.
However, as the coin leapt almost 10% on Friday 9, shares surged 12%.