Bitcoin (BTC) price climbed above the $21,000 level. It gained momentum yesterday, jumping over 10 percent on a daily basis. Bitcoin (BTC) price surged from $19,310 to $21,575. Behind this is a move by MicroStrategy. The company applied to the SEC to sell $500 million worth of MSTR stock in an attempt to buy more Bitcoin. This, in turn, encouraged a bullish sentiment in the market. Here are the details…
Microstrategy buys more BTC: Bitcoin price rises
MicroStrategy submitted a prospectus to the US Securities and Exchange Commission (SEC) on September 9. In the document, investment banks Cowen & Co. and that they would sell $500 million of Class A shares of MSTR through BTIG LLC. It was stated that the proceeds will be used for “general corporate purposes, including the purchase of Bitcoin”.
The software company continues its strategy of buying Bitcoin even after Bitcoin maximalist Michael Saylor stepped down as CEO. Currently, Saylor is chairman of the board and will continue to focus on Bitcoin. Phong Le has become the new CEO of MicroStrategy. As we reported as Kriptokoin.com, the company suffered losses as the BTC price fell to a record low. It reported losses of over $1 billion in the second quarter.
The company bought BTC with an average price of $ 30,000
Microstrategy has 129,699 Bitcoins acquired for a total of $3,977 billion and an average purchase price of $30,664 per BTC. In fact, 14,589 BTC is held by MicroStrategy. 115,110 BTC is held by its subsidiary MacroStrategy LLC. The document includes the following statements:
We plan to use the net proceeds from this offer for general corporate purposes, including the purchase of Bitcoin, unless otherwise stated in the applicable prospectus appendix. We have not specifically determined the amount of net income to be used for any purpose.
As of September 9, MSTR stock price was up almost 11.77 percent to $261.97. In fact, the company’s Bitcoin purchase moved the stock price relative to the Bitcoin price.
Latest situation and expectations in Bitcoin price
Bitcoin (BTC) price is still trading below the key 200-WMA level of $23,000. However, the announcement by MicroStrategy is expected to push the price above 200-WMA. At the time of writing, BTC price is trading at $21,372, up 2.7 percent in the last 24 hours. Experts believe that Bitcoin is bullish as long as the price can climb above $23,500. Meanwhile, the rate of change recorded by BTC in the last 7 days is seen as a 7.2 percent increase. You can observe the upward movement of Bitcoin after the Microstrategy news in the chart below:
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