- The renowned company MicroStrategy is about to acquire a high number of Bitcoin to increase its holdings.
- With the help of two investment companies, BTIG and Cowen, the sale of shares worth 500 million could be carried out.
- Michael Saylor is being accused of tax fraud and will face high economic charges.
- The total market capitalization of cryptocurrencies crossed the trillion-dollar line again.
Receiving $500 million from a sale of its shares, MicroStrategy will use it to grow its Bitcoin holdings. The company is currently the world’s largest publicly traded Bitcoin holding company.
In a filing with the US Securities and Exchange Commission, MicroStrategy engaged two global investment firms, BTIG and Cowen. These have agents who made the sale of the shares worth 500 million dollars a reality. Proceeds from this sale were predetermined for “general corporate purposes,” but will be used to purchase more Bitcoin.
The latest presentation came almost two months after Michael Saylor left his role at Microstrategy. Since its first purchases in 2020, the Virginia-based business intelligence firm has amassed more than 130,000 BTC valued at just over $2.7 billion.
After the fall of more than 70% of its price, Bitcoin has been affected and even more those companies that are holders of the currency. In the second quarter, MicroStrategy reported a loss of around $1 billion along with a $917 million impairment charge linked to the decline in the value of its Bitcoin holding.
As ZyCrypto reported, the latest lawsuit against Michael Saylor by the Washington DC Attorney General for tax fraud shocked the Bitcoin community. According to the lawsuit, Saylor has been evading income taxes since 2013 with the help of MicroStrategy district employees. He was also addressing the businessman’s Bitcoin assets which, according to a statement from early 2021, are projected to be worth approximately 18,000 BTC. The businessman may have to sell some of his BTC to cover the fees because the expected damages in the lawsuit exceed $100 million, according to some analysts.
The cryptocurrency community has praised Friday’s action, with many thinking that the company’s decision to continue buying Bitcoin will be beneficial to the price of the digital currency.
With Bitcoin surging more than 11.56% on Friday, shares of MicroStrategy surged more than 12%, marking the biggest one-day gain since June. Other cryptocurrencies saw gains, with Ethereum, Cardano and Shiba Inu each soaring more than 5% as the market capitalization of all cryptocurrencies surpassed $1.05 trillion.
