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Bitcoin price climbed back above the closely watched $20,000 per bitcoin level this week, while ethereum price surged in the successful first leg of its sweeping merger upgrade, all eyes turning to critical information to come next week.
Now business intelligence software company MicroStrategy
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“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 specified in the applicable prospectus supplement,” MicroStrategy wrote in a Securities and Exchange Commission. (SEC) filing this week.
However, MicroStrategy, which has accumulated nearly 130,000 bitcoins worth around $2.7 billion over the past two years, warned that wild swings in bitcoin’s price could mean it is losing ground. money on the bet.
“Future fluctuations in bitcoin trading prices may result in the conversion of bitcoin purchased with the net proceeds of this cash offering to be significantly less in value than the net proceeds of this offering,” the company said.
The price of bitcoin fell nearly $70,000 per bitcoin late last year, losing around 70% of its value and wiping out some $2 trillion from the combined crypto market. The price of Ethereum and most other major cryptocurrencies saw similar declines.
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The bitcoin, ethereum and crypto markets have fallen this year, along with many once-high-growth tech stocks, as the Federal Reserve embarks on a monetary tightening program designed to bring down inflation that reached 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.