MicroStrategy Causes Bitcoin's Jump
After falling to the levels of 18 thousand dollars, bitcoin rebounded and rose to trade at the time of writing above 21 thousand dollars.
Bitcoin maintained its bullish trajectory, albeit temporarily, due to the positive news from MicroStrategy, which submitted a request to the SEC to allow it to buy more Bitcoin for $500 million.
The news came as the largest cryptocurrency surged to the $20,000 level, after which it jumped to a new two-week high.
The filing with the securities regulator shows that MicroStrategy plans to sell up to $500 million of its stock for general corporate purposes, including the acquisition of bitcoin.
Interestingly, the market reacted quite positively to this deposit, with the price of MSTR rising more than 10% on Friday to over $260 per share.
Bitcoin price has also seen a slight increase in the past few days.
As we were told at the outset of the article, Bitcoin dropped to a 6-week low of $18,500 during the week but recovered to $20,000 early Friday.
The start of the weekend brought more positivity to the bulls as Bitcoin jumped to a two-week high above $21,500, possibly driven by MicroStrategy plans.
Looking from the company's perspective, this filing comes at a compelling time.
As usual, there were rumors that the company was starting to dump its bitcoins, after Michael Saylor stepped down as CEO.
Once this happens, MicroStrategy reassured that it will continue to accumulate bitcoin but has not yet formally done so.
The company's last purchase came at the end of June - worth $10 million.
It is also worth noting that MicroStrategy is incurring a huge unrealized loss on its Bitcoin holdings.
