Bitcoin saw a modest rise on Thursday after MicroStrategy, a prominent corporate Bitcoin accumulator, unveiled plans to issue additional shares. This move, aimed at securing funds to purchase even more Bitcoin, has fueled excitement among investors.
As of 11:30 a.m. in Singapore, Bitcoin was trading at $98,747, marking a 0.32% increase from the previous day. It briefly touched an intraday high of $99,876.70. A broader cryptocurrency index, including popular tokens like Ether, Solana, and Dogecoin, climbed 0.2%, recovering from midweek losses.
“The announcement that MicroStrategy will issue more shares next year to buy Bitcoin is pushing up the prices,” said Sean McNulty, director of trading at Arbelos Markets.
“The market is reacting to the company’s aggressive strategy, and MicroStrategy news is now a key market driver.” MicroStrategy recently filed with the U.S. Securities and Exchange Commission (SEC) to increase the authorized number of Class A common stock and preferred stock.
The proposed amendments would boost the authorized common stock from 330 million to 10.33 billion units and preferred stock from 5 million to over 1 billion units.
This strategy underscores MicroStrategy’s transformation from a software company to a major Bitcoin investor. The firm announced earlier this week that it had purchased $561 million worth of Bitcoin at an average price close to record highs, marking its seventh consecutive week of acquisitions. The company’s holdings now total an estimated $40 billion in Bitcoin.
Bitcoin, up 135% this year, continues to outpace traditional assets like global stocks and gold. However, market watchers are bracing for potential volatility as $43 billion worth of Bitcoin and Ether derivatives are set to expire on Friday. “Market makers could unwind their hedges, leading to choppy trading,” McNulty noted.
Also Read: MicroStrategy Adds Another 3,177 BTC with 0.72% Yield Boost
