Michael Saylor doubles down, selling stocks to buy more Bitcoin, causing stock prices to plummet by 24% at the opening.

The publicly traded company MicroStrategy, which holds the largest amount of Bitcoin globally, recently filed a registration statement for a $2 billion stock offering, with proceeds intended for general corporate purposes, including acquiring Bitcoin, working capital, and potentially buying back shares or paying off debt based on market conditions. However, MicroStrategy was unable to withstand the ruthless U.S. stock market as its shares dropped over 23% at the opening.

MicroStrategy Doubles Down with $2 Billion Bitcoin Purchase

In a filing submitted to the SEC on August 1st, MicroStrategy announced its plans to issue Class A stock to raise approximately $2 billion for general corporate purposes, including acquiring more Bitcoin, operating funds, and potential debt repurchases based on market conditions.

The company currently holds 226,500 Bitcoins, valued at around $11.9 billion at the current price of $52,700 per Bitcoin. MicroStrategy's total market value stands at $25.7 billion.

MicroStrategy's Bitcoin Purchases: Leveraging for Long Positions?

In the past, MicroStrategy has raised cash through stock and bond sales to purchase Bitcoin. For instance, on June 13th this year, the company issued $500 million in convertible notes privately, which was increased to $700 million the following day. Going back further, in March, MicroStrategy issued convertible bonds for the second time, prompting JPMorgan to warn about exacerbating bubble risks.

MicroStrategy issues another $500 million convertible bond with a conversion price of up to $2327, sparking concerns about bubble risks from JPMorgan.

The report also mentioned that the overall strategy may involve periodic sales of Bitcoin to generate cash for debt repayments and financial management policies.

Last week, MicroStrategy released its second-quarter financial report, showing continued losses in its software business with a 7.5% year-on-year revenue decrease to $111.1 million. The operating loss reached $18.7 million.

MicroStrategy Financial Report: Introduces "Bitcoin Return on Investment" KPI, plans to issue $2 billion in new shares to buy Bitcoin.