Microstrategy (MSTR) stock closed higher on Monday as news broke that the company is set to raise more cash. The cash will be used to fund additional purchases of Bitcoin and add to its already significant holdings.
MSTR stock closed up 0.39% on Monday in what was an underperformance versus the broader market. MSTR stock also underperformed the crypto space, which has been boosted by the resurgence in the price of Bitcoin.
According to reports, Microstrategy will raise cash for working capital purposes but also to purchase more Bitcoin.
“We intend to use the net proceeds from this offering for general corporate purposes, including the acquisition of Bitcoin,” the company said.
Microstrategy is a leveraged bet on Bitcoin, and the company has used this strategy previously to acquire large holdings of the digital asset.
The latest reports estimate Microstrategy holds nearly 130,000 BTC and the average purchase price is reported to be approximately $30,700 per coin. Microstrategy took an impairment charge of $1.09 billion when it announced its latest results on August 2.