Bitcoin BTC , ethereum and other major cryptocurrencies have rocketed higher in September—though some are worried a “black swan” event could be imminent.
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The bitcoin price has clawed its way back over the closely-watched $20,000 per bitcoin level this week while the ethereum price has surged on the first successful step in its radical merge upgrade, with all eyes turning to critical information coming next week.
Now, business intelligence software company MicroStrategy MSTR , known as the world’s largest corporate buyer of bitcoin, has revealed it’s planning a $500 million in stock sale with the proceeds potentially being used to buy more bitcoin.
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The bitcoin price has bounced back from recent lows, pushing up the price of ethereum and other … [+]
“We intend to use the net proceeds from the sale of any class A common stock offered under this prospectus for general corporate purposes, including the acquisition of bitcoin, unless otherwise indicated in the applicable prospectus supplement,” MicroStrategy wrote in a Securities and Exchange Commission (SEC) filing this week.
However, MicroStrategy, which has accumulated almost 130,000 bitcoin worth some $2.7 billion over the last two years, warned that wild bitcoin price swings could mean it loses money on the bet.
“Future fluctuations in bitcoin trading prices may result in our converting Bitcoin purchased with the net proceeds from this offering into cash with a value substantially below the net proceeds from this offering,” the company said.
The bitcoin price has crashed from almost $70,000 per bitcoin late last year, losing around 70% of its value and wiping some $2 trillion from the combined crypto market. The ethereum price and most other major cryptocurrencies have recorded similar declines.
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The bitcoin price has fallen sharply through 2022, dropping along with the ethereum price and other … [+]
The bitcoin, ethereum and crypto market has fallen along with many formerly high-growth tech stocks this year as the Federal Reserve embarks on a monetary tightening program designed to drive down inflation that’s surged to a 40-year high.
Last month, MicroStrategy founder Michael Saylor stepped down as the company’s chief executive to become executive chairman and focus on buying bitcoin.
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