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.
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