Michael Saylor, the chairman, increased his stake, selling stocks to buy more Bitcoin, causing the stock price to plummet 24% at the opening.

MicroStrategy, the listed company holding the largest number of Bitcoins in the world, recently submitted a registration statement for a US$2 billion market stock issuance plan. The net proceeds will be used for general corporate purposes, including the acquisition of Bitcoin and working capital, and will be used according to the market Situation repurchase or repayment of debt. But no matter what, the micro-strategy still failed to withstand the ruthless U.S. stock market, which fell more than 23% at the opening.

MicroStrategy adds another 2 billion to buy Bitcoin

In a report submitted to the SEC on 8/1 MicroStrategy stated that the company plans to issue Class A shares. To raise approximately $2 billion in funds, it will be used for general corporate purposes, including the acquisition of Bitcoin and working capital, and to repurchase or repay debt based on market conditions.

The company currently holds 226,500 Bitcoins, which is approximately US$11.9 billion at the current price of 52,700. Meanwhile, MicroStrategy's total market capitalization currently stands at $25.7 billion.

Buying Micro Strategy = Long Bitcoin with Leverage?

In fact, MicroStrategy has repeatedly raised cash to buy Bitcoin by selling stocks and bonds in the past. For example, on June 13 this year, the company issued US$500 million in convertible notes through private placement, and one day later it increased the issuance to US$700 million. Looking further back, we saw MicroStrategy's second issuance of convertible bonds in March, prompting JPMorgan Chase to warn that it may intensify the risk of a bubble.

( MicroStrategy issued another 500 million convertible bonds, with a conversion price as high as US$2,327. JPMorgan Chase was worried about bubble risks )

The report also pointed out that the overall strategy may consider selling Bitcoin regularly to obtain cash, which can be used for financial management policies such as repaying debt and generating cash flow.

MicroStrategy's software business is still in the red, with revenue down 7.5% year-on-year to US$111.1 million. Loss from operations amounted to US$18.7 million.

Last week, MicroStrategy announced its second-quarter financial report. Its software business still showed losses, with revenue down 7.5% year-on-year to US$111.1 million. Loss from operations amounted to US$18.7 million.

( Micro Strategy Financial Report: Introducing the "Bitcoin Yield" KPI indicator, and issuing another 2 billion mg of new shares to buy Bitcoin )