MicroStrategy announced a stock issuance and plans to increase its investment in Bitcoin. The company's stock offering aims to generate substantial financial assets to be utilized for buying cryptocurrency and covering operational expenses.
Stock Offering and Financial Plans
MicroStrategy announced its stock offering at a public listing price of $80 per share, aiming to raise $563.4 million. The proceeds from the sale will go towards acquiring more Bitcoin and covering company operating expenses. The stock includes an 8% coupon and a liquidation value of $100.
Strengthening Company Balance Sheet
In January, MicroStrategy increased its Bitcoin holdings by purchasing an additional 10,107 BTC for approximately $1.1 billion. Currently, the company holds 471,107 BTC. The company also announced a debt buyback with a $1.05 billion tranche of convertible senior notes due in 2027.
Challenging Corporate Alternative Minimum Tax
MicroStrategy and Coinbase have argued against the Corporate Alternative Minimum Tax (CAMT), which imposes a 15% tax on companies with an income exceeding $1 billion. They urged a change in wording to exclude unrealized gains and losses on investments. Otherwise, MicroStrategy could face taxes on its Bitcoin holdings.
MicroStrategy continues to advance its Bitcoin investment strategy while addressing potential tax policy impacts, showing a proactive stance in the market by increasing its Bitcoin holdings.
