MicroStrategy bought $500 million worth of bitcoins with proceeds from stock sales

According to a U.S. Securities and Exchange Commission report, the company poured $500 million into bitcoin. However, the company has a reserve of 129,699 BTC. MicroStrategy is currently $1 billion in losses because of the bitcoin purchase.

At the moment, MicroStrategy is the largest institutional buyer of bitcoin. Institutional means it has a lot of dough, in short.

Although u can see that since the company has decided to partner with two more Cowen and Company and BTIG. The collaboration itself is to sell $500 million worth of Class A stock. According to the SEC statement.

Class A stock is a type of security that allows you to receive dividends from the company you own. Still, u don't have a vote on the board of directors & choose the course of the company's overall movement. MicroStrategy has bought almost $4 billion worth of Bitcoin in the last couple of years. That's about 129,700 Bitcoins. 

All in all, this move of selling stock, and buying bitcoin at the same time, is understandable. After all, judging by the reports & statements, the company is now at a billion loss & wants to buy up on the drawdown. After all, of the $4 billion worth of bitcoins purchased, there's only $2.8 billion if u take the equivalent in dollars. 

"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 purchase of bitcoin, unless otherwise specified in the applicable prospectus supplement," from the company's statement.