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MicroStrategy Plans to Acquire More Bitcoin by Selling Shares as Stock Prices Are Falling

MicroStrategy’s stock rose recently as cryptocurrency prices soared, but it fell when the company announced that it intends to liquidate its Bitcoin holdings, lowering the value of the shares.

MicroStrategy filed a Securities and Exchange Commission filing on Friday to offer and sell up to $500 million in common stock as part of the purchase of additional BitcoinBTCUSD +3.08%. At present, the company has a market value of approximately $3 billion.

As MicroStrategy stock declined 3% in premarket trade on Monday, it rose 11.7% on Friday. The stock was up in premarket trading earlier in the day.

The Man Behind the Company

Michael Saylor, the company’s founder, founded MicroStrategy in 1989 and focused on business intelligence software. With Saylor at the helm, MicroStrategy became one of the biggest Bitcoin owners after spending years buying and holding Bitcoin.

According to the corporation, it owned 129,699 Bitcoins at the end of June, worth approximately $2.9 billion. Due to its correlation with the value of the biggest digital asset, MicroStrategy is one of several stocks that move with its price.

A day earlier, bitcoin’s price had dropped to $18,500, but it has since soared to more than $20,000 over the past few days. Cryptocurrencies continued to rise on Monday, surpassing $22,000 despite choppy trading.