July 24, 2024
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As MicroStrategy files with the SEC to purchase more bitcoin, the price of bitcoin rises

The price of Bitcoin (BTC) accelerated yesterday, surging over 10% to surpass the $21,000 mark. From $19,310 to $21,575, the price of Bitcoin (BTC) increased. The SEC filing by MicroStrategy to sell $500 million in MSTR shares in order to purchase more Bitcoin has now boosted market optimism.

The price of Bitcoin (BTC) is currently strongly trading near $21,575, up 7% in a day. From its low point of $18,702, Bitcoin rose 15% in a single week.

MicroStrategy Increases Bitcoin Purchase 

On September 9, MicroStrategy submitted a prospectus to the U.S. Through investment banks Cowen & Co. and BTIG LLC, the Securities and Exchange Commission (SEC) will sell $500 million worth of Class A MSTR shares for “general corporate objectives, including the acquisition of bitcoin.”

Even after Michael Saylor, a Bitcoin maximalist resigned as CEO, the software company kept up its acquisition approach. Saylor, who now serves as the board of directors chairman, will keep concentrating on Bitcoin. The new CEO of MicroStrategy is Phong Le.

In fact, the corporation suffered a $1 billion loss in the second quarter as a result of the record low BTC price.

Microstrategy now owns 129,699 bitcoins, with an average purchase price of around $30,664 per BTC and a total cost of $3.977 billion. In actuality, MicroStrategy holds 14,589 BTC, and MacroStrategy LLC, a subsidiary, holds 115,110 BTC.

The MSTR stock price was $261.97 as of September 9—an increase of over 11.77%. In fact, the company’s purchase of bitcoin caused the stock price to fluctuate in line with the price of bitcoin. After the stock offering, the stock price is anticipated to decline.

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