MicroStrategy to Sell $1B Worth of Stock to Buy Bitcoin

in bitcoin •  4 years ago 

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MicroStrategy will sell up to $1 billion worth of its stock to buy more bitcoin, according to a form published on June 14.

MicroStrategy, in its latest move signaling support for bitcoin, will sell up to $1 billion of its stock to buy the asset. The company published the relevant SEC form on June 14. CEO Michel Saylor, now one of bitcoin’s strongest proponents, also revealed the development on Twitter.

MicroStrategy has been consistently doubling down on its bitcoin bet, having made a considerable return on investment on its bitcoin purchases with the bull run in the first few months of 2021. Clearly, the company and its leading figure are betting on bitcoin to grow moving forward.

The company is one that sticks to its word. Just yesterday, on June 14, it sold $500 million in secured notes to buy roughly 11,900 BTC. The news pushed the stock price of MicroStrategy by 12%.

MicroStrategy’s interest in bitcoin goes beyond just purchasing BTC and sitting on the asset. The company’s CEO is involving himself in more educational and awareness efforts, including the launch of a Bitcoin Mining Council.

Michael Saylor and the Bitcoin Mining Council

Recently, Saylor announced that the newly launched Bitcoin Mining Council would have a meeting on June 16 to discuss bitcoin’s energy consumption and possible green energy solutions. Notably, Elon Musk will not be a part of the mining council, though he has held a call related to the council in the past.

Musk’s tweets set off a storm of headlines related to bitcoin’s energy consumption, which subsequently sent the cryptocurrency’s price tanking. The Tesla CEO said that the company would stop accepting bitcoin payments for Teslas until mining switched to cleaner sources of energy.

Recently, he updated the status on this by saying that if there was confirmation of approximately 50% of mining using clean energy, as well as a “positive future trend,” Tesla would start accepting bitcoin again. This helped bitcoin’s price up, on top of the approval of the Taproot upgrade for the network.

The Bitcoin Mining Council itself is an organization composed loosely of individuals, groups, and miners that will focus on bringing positive changes to mining on the network. The FAQ on the council’s page goes so far as to say that it will not involve Elon Musk, assuaging the market’s concerns on the Tesla CEO, which it has grown upset with.

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