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SEC Filings declare Microstrategy reinvesting $500 M of stock sales into Bitcoin

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microstrategy

MicroStrategy has created ripples in the market after its recent SEC filings. The largest institutional buyer of Bitcoin MicroStrategy has incorporated an agreement with two agents which are "Cowen and Company" and "BTIG". The agreement has been initiated inorder to allow MicroStrategy to sell its aggregated class A common stock. The aggregated class A common stock is valued around $ 500,000,000. This information has been revealed through a SEC Filings by the organisation.

The company declared that they intend to utilise the proceeds of this sale of aggregated stocks for various general purpose activities dealing with corporate affairs. Apart from that they also mentioned that these funds will also be used for the acquisition of Bitcoin.

“MicroStrategy” has been co founded by the renowned Bitcoin bull Mr. Michael Salyor who has amassed a massive amount of Bitcoin which is precisely around 129,699 BTC. The purchase price of these Bitcoins has been averaged around $3.977 Billion. Although the business analytics firm has been dealing with various market uncertainties since a prolonged period of time however the organisation seems to be firm on its goal to acquire more BTC through the sale of company stocks.

The strategy of buying the dip is crucial for MicroStrategy because the BTC reserve of MicroStrategy has steadily dipped recently. The estimated loss suffered by the organisation is around $1 Billion. Due to the market uncertainties the entire BTC reserves have fallen to a value of $2.8 Billion.

Historically MicroStrategy has been an organisation which has been supporting Bitcoin even though the cryptocurrency market is showing signs of steady decline. In the past the CFO of MicroStrategy had declared that they have been following a straightforward strategy with Bitcoin wherein they will continue to buy and hold Bitcoin. If in case their cash reserves start depleting they will look forward to various alternate ways to generate cash and invest the money back into Bitcoin.

The CFO of MicroStrategy declared that in the upcoming quarters their primary focus would be on investing in various Bitcoin bonds and various other Bitcoin backed products. However the CFO has refuted the possibility of selling the assets.