Critical SEC Filing Reveals Crypto Poised for Surprise $500M Earthquake After Sudden Decline in Bitcoin and Ethereum

BitcoinBTC
ethereum and other major cryptocurrencies have surged higher in September – even as some worry that a “black swan” event may be imminent.

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Bitcoin price has clawed its way back above the closely watched $20,000 per bitcoin level this week, while ethereum price has rallied on the first successful step of its radical merger upgrade, with all eyes on critical information coming next week.

Now, Business Intelligence software company MicroStrategyMSTR
known as the world’s largest corporate buyer of bitcoin, has revealed that it is planning a $500 million stock sale, with the proceeds potentially being used to buy more bitcoin.

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“We intend to use the net proceeds from the sale of all Class A shares offered under this prospectus for general corporate purposes, including the acquisition of bitcoin, unless otherwise provided in the applicable prospectus supplement,” MicroStrategy wrote in a Securities and Exchange Commission filing. (SEC) filing this week.

However, MicroStrategy, which has accumulated nearly 130,000 bitcoin worth about $2.7 billion over the past two years, warned that wild bitcoin price swings could mean it loses money on its stake.

“Future fluctuations in bitcoin trading prices may cause us to convert Bitcoin purchased with the net proceeds of this offering into cash at a value materially less than the net proceeds of this offering,” the company said.

The Bitcoin price has crashed from nearly $70,000 per bitcoin late last year, losing about 70% of its value and wiping out about $2 trillion from the combined crypto market. The Ethereum price and most other major cryptocurrencies have recorded similar falls.

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The bitcoin, ethereum and crypto markets have fallen along with many former high-growth tech stocks this year as the Federal Reserve embarks on a monetary tightening program designed to drive down inflation that has risen to a 40-year high.

Last month, MicroStrategy founder Michael Saylor stepped down as the company’s CEO to become executive chairman and focus on buying bitcoin.