MicroStrategy is planning to raise $2 billion by selling its class A shares to buy more Bitcoin and repay debt.

MicroStrategy, the largest public Bitcoin (BTC) holder, filed a regulatory document on Aug. 1 to raise significant capital to enhance its crypto strategy as Bitcoin continues to show growth potential.

According to the filing with the U.S. Securities and Exchange Commission, the Virginia-based company aims to raise $2 billion through the sale of its class A shares. While the timeline for selling these shares was not specified, the proceeds are intended for “general corporate purposes, including the acquisition of Bitcoin.”

“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 acquisition of Bitcoin, unless otherwise indicated in the applicable prospectus supplement.”

The company has not detailed how much of the proceeds will be allocated for Bitcoin purchases, stating that it has not determined the specific amount for any particular purpose.

MicroStrategy’s announcement comes alongside the release of its Q2 financial results. The company reported acquiring 12,222 BTC during the quarter, spending over $805 million at an average price of $65,880 per BTC. This latest acquisition brings its total Bitcoin holdings to 226,500 BTC, acquired at a cumulative cost of $8.3 billion as of July 31. Additionally, MicroStrategy introduced a “BTC Yield,” a new KPI targeting annual returns of 4-8% over the next three years.

Despite the positive outlook on its Bitcoin strategy, MicroStrategy’s software business underperformed in Q2, posting $111.4 million in revenue, below analysts’ expectations of $119.3 million. The company’s net loss was around $102 million, while its net income was at $22.2 million. Following the financial report, MicroStrategy shares (MSTR) dropped by over 6.3% to $1,511, according to data from Google Finance.

MicroStrategy has a history of using share sales to fund its Bitcoin acquisitions. In late 2023, the company sold $750 million worth of shares with the intention of purchasing more Bitcoin, confirming its Bitcoin-centric strategy through subsequent multi-million dollar acquisitions.

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