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Business intelligence firm MicroStrategy (MSTR) just spilled intel that the financial services company of Capital International has acquired a huge equity stake from them. Reports are suggesting that the latter has invested over half a billion dollars into the former.
If the Securities and Exchange Commission filing made by MicroStrategy is anything to go by, it was revealed that in the second quarter of 2021, the firm made it known that Capital International Investors has purchased 953,242 shares of its stock.
After news got out in the open, MicroStrategy’s stock price has been observed to increase by 1.7 percent on Friday which is around $628.19. In April, it was revealed that the private equity firm had acquired an undisclosed stake in the business intelligence software maker. At that time, reports had it that the latter was in talks with Capital International Investors over how best to address its funding needs.
Bitcoin still hovering over at $30K
Albeit this major investment revelation, the price of Bitcoin may well seem to be unfazed by it. As of writing, BTC’s price sits at $33,372. In October 2020, MicroStrategy announced that they’ve purchased $425 million in Bitcoin. Michael Saylor – the company’s CEO and a huge Bitcoin and cryptocurrency proponent said during that time that their decision in making BTC the company’s primary treasury reserve asset is an example of MicroStrategy’s embrace of virtual technologies. He went on to say that the purchase of the said amount in Bitcoin during that quarter offers possibility or greater return potential for investors instead of such balances in cash and has increased the overall presence of the company in the market.
MicroStrategy’s Bitcoin journey
Also, back in June, the firm revealed that they’ve planned to “raise $400 million aggregate principal amount of senior secured notes in private offering” to buy more BTC. They, later on, upped their debt offering to half a billion dollars alongside the purchase of $489 million in crypto assets ($37,617 per Bitcoin). This gave them a total BTC count of 105,085 at an average purchase price of $26,080. Despite all these, their stocks fell for a short amount of time by more than two percent.
A few days prior to MicroStrategy’s Bitcoin purchase, Saylor sat down with CNBC’s “Fast Money” where he said that he sees BTC as digital property and store of value. As for both ether and the Ethereum blockchain, he said that these two seek to disrupt traditional finance.
MicroStrategy has a market cap of $1.72 billion and has been at this for more than two decades now. The company is considered a pioneer in offering business intelligence solutions to enterprises across different industries all over the world. It has been expanding its business into the geospatial information management market for quite some time now as well.
The company revealed that it had not yet made any definitive decisions on this matter. In its report, it stated that they are still in the process of evaluating all the opportunities and then make a decision on what path should be taken in accordance with their plans. MicroStrategy also disclosed that they are still exploring various options which could give them a boost in their business growth and take part in new ventures to help expand their business as well. It is expected that Bitcoin won’t be left out on those.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
