Bitcoin price climbs as MicroStrategy announces plan to issue more shares
Bitcoin saw a rise on Thursday following the news that MicroStrategy, a company known for stockpiling the digital asset, plans to issue more shares. This move would enable them to acquire even more tokens. As of 11.30 am in Singapore, Bitcoin was up 0.32 per cent at US$98,747, slightly below its peak of US$99,876.70 earlier in the day. Additionally, other cryptocurrencies like Ether, Solana, and Dogecoin experienced a 0.2 per cent increase after losses on Wednesday.
According to Sean McNulty, director of trading at Arbelos Markets, the market is reacting positively to the announcement of MicroStrategy’s plans to buy more Bitcoin next year. This anticipation of increased Bitcoin purchases by MicroStrategy has been a major driver behind the recent market surge. It’s no wonder that staying up to date with MicroStrategy news has become a daily routine for many traders.
MicroStrategy recently disclosed its intention to increase the number of authorized shares of Class A common stock and preferred stock in a filing with the US Securities and Exchange Commission on December 23. This potential expansion would give the company, which has pivoted from a software company to a Bitcoin investor, more resources to work with. Just this week, MicroStrategy revealed their purchase of an additional US$561 million worth of Bitcoin, marking seven consecutive weeks of acquisitions.
Bitcoin has shown remarkable growth of 135 per cent this year, surpassing the returns of traditional investment options like global stocks and gold. However, some traders have issued a word of caution, predicting potential volatility in the coming days due to the substantial expiries of open interest in Bitcoin and Ether derivatives. Notably, on Friday, a record US$43 billion of open interest, including US$13.95 billion in Bitcoin options and US$3.77 billion in Ether options, will expire on the Deribit derivatives exchange. This could lead to market makers adjusting their positions, impacting the market’s stability.
As the cryptocurrency market continues to fluctuate, it’s important to stay informed and exercise caution when trading in such a dynamic environment. Stay tuned for updates and insights on how these developments impact the crypto landscape.
