Key Points
- MicroStrategy has purchased an additional 10,107 Bitcoin, valued at $1.1 billion, as Bitcoin’s price exceeds $101K.
- The company plans to use proceeds from a public offering of 2.5 million shares to buy more Bitcoin.
MicroStrategy has acquired an additional 10,107 units of Bitcoin (BTC), valued at $1.1 billion, as the cryptocurrency’s price surges past $101,000.
Earlier on Monday, Bitcoin’s price dipped below $98,000, leading to nearly $1 billion in crypto liquidations.
Bitcoin’s Price and Market Complexity
However, during the New York trading session, Bitcoin’s price regained bullish sentiment, rebounding by nearly 4 percent to trade around $101,628.
The ongoing tug of war between buyers and sellers has increased the short-term complexity of Bitcoin’s price.
A potential reversal that has been forming over the past two months could be invalidated if Bitcoin’s price rallies and consistently closes above $104.4k in the coming weeks.
MicroStrategy’s Bitcoin Strategy
MicroStrategy, valued at $88 billion, used the proceeds from a previous stock sale to purchase the additional Bitcoin.
The company now holds 471,107 Bitcoins, which currently have a market value of about $47 billion, representing an unrealized profit of over $17 billion.
The company’s co-founder, Michael Saylor, has indicated that the Bitcoin holdings are not for sale at any time.
To further its Bitcoin strategy, MicroStrategy plans to offer a public offering of 2.5 million shares of its Class A Perpetual Strike Preferred Stock.
The company intends to use the proceeds from this offering to purchase more Bitcoin.
The company recently received approval from shareholders to increase its Class A shares from 330 million to over 10 billion.
With support from institutional investors and global central banks, MicroStrategy is determined to strengthen its Bitcoin strategy over the years.
The Rising Demand for Bitcoin
The demand for Bitcoin has been growing exponentially, particularly in light of the ongoing global devaluation of fiat currencies due to central bank printings.
The decentralized nature of the Bitcoin network has attracted more participants to this form of money with a proven track record over the past 15 years.
The Trump administration is reportedly interested in adopting Bitcoin as a strategic reserve asset to complement gold and help reduce the nation’s over $35 trillion national debt.
With a fixed supply of 21 million Bitcoins, and over 15 million BTCs held by long-term investors, the rising demand for Bitcoin from institutional investors could lead to further bullish sentiment in the years to come.
