The price of Bitcoin increased on Saturday, quickly exceeding the level of $ 21,000 per barrel by more than 10%.
Market sentiment has become more bullish due to MicroStrategy’s filing with the US Securities and Exchange Commission to sell $500 million worth of MSTR shares to buy more bitcoins.
As of this writing, Bitcoin is trading at $21,434, up 8.3% over the past seven days, Coingecko data shows.
The publicly traded software company holds more than 129,700 BTC, making it the largest corporate holder of the world’s most popular cryptocurrency.
Microstrategy disclosed in its prospectus filing with the SEC that it has entered into an agreement with investment bank Cowen & Co. to underwrite up to half a billion dollars in MSTR Class-A common stock.
Former MicroStrategy CEO Michael Saylor. Image: Bitcoin Magazine
What kind of bear market? Micro strategy needs more bitcoins
The recent departure of MicroStrategy founder Michael Saylor as CEO is the first concrete indication that he has not abandoned his grand plan to turn the company into a cryptocurrency proxy focused on buying bitcoins.
MicroStrategy, which now has Phong Le as its new CEO, reported a second quarter loss of more than $1 billion after the BTC price dropped.
As of 2020, Saylor has used the money raised through the sale of stocks and bonds to raise about 130,000 BTCs for over $2 billion.
In the year The former CEO, who co-founded MicroStrategy in 1989, still serves as executive chairman.
In its filing, MicroStrategy stated that the company may use the net proceeds from this offering to acquire additional bitcoins.
Microstrategy stock is pegged to BTC price.
The company earlier this week issued a warning about the volatility and sudden price movements of Bitcoin, the largest cryptocurrency by market capitalization, trading below $20,000.
According to CoinMarketCap data, this number is far from the high of $68,789 in November last year.
Given this year’s market volatility, MicroStrategy’s stock is based on the price of Bitcoin, resulting in a $1.2 billion loss on Bitcoin bets. On Friday, however, BTC rose by about 10%, while stocks rose by 12%.
MicroStrategy owns 129,699 bitcoins for a total of $3.9 billion and an average value of about $30,666 per coin. In fact, MicroStrategy holds 14,590 BTCs and its subsidiary, MacroStrategy LLC, holds 115,111 units.
The District of Columbia recently filed charges against MicroStrategy and Saylor for tax evasion on the District’s Saylor income.
BTC total market cap at $413 billion on the daily chart | Source: TradingView.com Featured image from Nairametrics, chart from TradingView.com