On Thursday, Bitcoin experienced an uptick following the announcement from MicroStrategy, a prominent holder of the digital asset, regarding its intention to issue additional shares. This strategic decision is aimed at facilitating the acquisition of even more tokens.
The digital asset experienced a 0.32% increase, reaching $98,747 as of 11:30 a.m. in Singapore, having retreated from its intraday peak of $99,876.70. A broader measure of cryptocurrencies, which includes smaller tokens such as Ether, Solana, and the popular meme-coin Dogecoin, saw an increase of 0.2%, bouncing back from declines experienced on Wednesday.
“The news that MicroStrategy plans to issue additional shares next year to acquire more Bitcoin is driving prices higher,” stated Sean McNulty, director of trading at liquidity provider Arbelos Markets. The market appears optimistic regarding MicroStrategy’s Bitcoin acquisitions, which have significantly contributed to the recent upward trend. Keeping up with the latest developments from MicroStrategy has increasingly become a significant aspect of my daily routine.
MicroStrategy Inc. filed a request with the U.S. Securities and Exchange Commission on December 23 to expand the number of authorized shares of its Class A and preferred stock. This strategic shift would equip the company, which has evolved from a software developer to a significant Bitcoin holder, with enhanced capabilities.
MicroStrategy revealed earlier this week that it had acquired an additional $561 million worth of the digital token, purchasing at an average price close to last week’s record peak. The latest data indicates that this marks the seventh consecutive week of purchases.
Bitcoin has experienced a remarkable increase of 135% this year, outpacing the returns of conventional investments like global stocks and gold.
Traders have warned that the markets may experience increased volatility in the upcoming days due to significant expirations of open interest in Bitcoin and Ether derivatives.
On Friday, a historic $43 billion in open interest expires on the derivatives exchange Deribit, comprising $13.95 billion in Bitcoin options and $3.77 billion in Ether options.
“Market makers may unwind their hedges and short Bitcoin strikes, potentially leading to a volatile market on Friday,” McNulty stated.