Bitcoin Rallies into the Weekend as MicroStrategy May Raise $500M to Buy BTC
The largest corporate bitcoin holder has filed a new filing with the US Securities and Exchange Commission that will essentially allow it to purchase more BTC for up to $500 million.
The news comes as the cryptocurrency surged past the $20,000 level and jumped to a new two-week high.
- The filing with the securities regulator shows that MicroStrategy plans to sell up to $500 million worth of its stock for “general corporate purposes, including the acquisition of bitcoin.”
- Interestingly, the market reacted quite positively to this filing, with MSTR price surging by more than 10% on Friday to over $260 per piece.
- Bitcoin’s price has also seen an uptick in the past few days. The asset had tumbled to a 6-week low at $18,500 during the week but reclaimed the $20,000 early on Friday.
- The start of the weekend brought even more positivity to the bulls as BTC jumped to a two-week high above $21,500, perhaps fueled by MicroStrategy’s plans.
- Looking from the company’s perspective, this filing comes at a compelling time. As usual, there were rumors that the firm had begun disposing of its bitcoins (and, as usual, wrong ones) after Michael Saylor stepped down as CEO.
- Once that happened, MicroStrategy reassured that it will continue accumulating BTC but is yet to do so officially.
- The last company purchase came at the end of June – worth $10 million. It’s also worth noting that the business intelligence software giant sits on a massive unrealized loss on its bitcoin holdings.
I’m a journalist who specializes in investigative reporting and writing. I have written for the New York Times and other publications.