Bitcoin’s price experienced a modest increase on Thursday, rising 0.32% to $98,747 as of 2:04 p.m. after briefly approaching $99,877 during earlier trading. This uptick coincided with an announcement from MicroStrategy, a prominent business intelligence firm and major Bitcoin holder, regarding its plans to issue new shares to fund additional cryptocurrency acquisitions.
MicroStrategy’s Strategic Move
In a filing with the U.S. Securities and Exchange Commission (SEC) on December 23, MicroStrategy revealed its intention to seek approval to increase its authorized shares of both common and preferred stock. To facilitate its transition from a software company to a substantial Bitcoin investor, this strategic move is intended to increase the company’s liquidity.
MicroStrategy disclosed the acquisition of approximately $561 million in Bitcoin at an average price that was near the recent record high earlier this week. This marks the seventh consecutive week of net Bitcoin acquisitions. The company has established a record-breaking pace with its total purchases of $5.4 billion this month.
The announcement of MicroStrategy’s plans to issue additional shares has fueled the recent surge in Bitcoin’s price. Sean McNulty, Head of Trading at liquidity provider Arbelos Markets, noted, “The market is closely tracking MicroStrategy’s Bitcoin purchasing activity—it’s become a key driver of daily price movements.”
Bitcoin has experienced a 135% increase in value since the beginning of the year, surpassing conventional investment assets like global equities and gold. Despite the potential for regulatory uncertainty and broader market challenges, this robust performance is indicative of increasing interest and institutional adoption.
On Friday, traders are anticipating increased market volatility due to the expiration of a record net open interest in Bitcoin and Ether derivatives, which is valued at $43 billion, on Deribit, the premier crypto derivatives exchange. This comprises $13.95 billion in Option contracts for Bitcoin and $3.77 billion in Option contracts for Ether. Market makers will probably unwind hedge positions and potentially engage in short selling of Bitcoin, which could result in substantial market fluctuations.
MicroStrategy’s Commitment to Bitcoin
The increasing trend of institutional adoption in the cryptocurrency space is emphasized by MicroStrategy’s ongoing dedication to Bitcoin. The company’s actions have become a critical focal point for the market, affecting not only Bitcoin prices but also the broader sentiment in the digital asset ecosystem. As institutional actors like MicroStrategy double down on their crypto strategies, Bitcoin’s role as a digital asset of choice appears increasingly secure.
