MicroStrategy may sell $1 billion in stock to buy Bitcoin!

On Monday, MicroStrategy announced it would use $488 million of proceeds from a private placement to buy bitcoin, and the company said it may also sell up to $1 billion in stock for the same reason.

MicroStrategy said in a filing with the U.S. Securities and Exchange Commission that it will launch an "at the market" securities offering to provide the flexibility to sell up to $1 billion of Class A common stock over time.

In terms of the use of proceeds, MicroStrategy said it may use the funds collected from any stock sales for a variety of reasons, including purchasing more Bitcoin.

“We intend to use the net proceeds from any sale of Class A common stock offered pursuant to this prospectus for general corporate purposes, including the purchase of bitcoin, unless otherwise specified in the applicable prospectus supplement,” the filing states. “We have not identified an amount of the net proceeds to be earmarked for any particular purpose. Accordingly, management will retain broad discretion with respect to the allocation of the net proceeds from any offering.”

“Bitcoin does not pay interest or other returns, and therefore, the ability to obtain an investment return from the net proceeds of this offering will depend on whether the value of Bitcoin appreciates after we purchase Bitcoin with the net proceeds from this offering,” the filing reads.

MicroStrategy held 92,079 bitcoins as of June 4, according to SEC filings. The company said today that it intends to purchase an additional $488 million in bitcoins. The filings show that MicroStrategy purchased bitcoins at an average price of $24,450, meaning the company’s cryptocurrency holdings have increased by nearly $1.5 billion.

If the company reinvested all of its $1 billion proceeds in Bitcoin, it would add approximately 25,000 bitcoins to its coffers at the current price of $40,150.