Bitcoin Rises as MicroStrategy (MSTR) Plans More Stock Issuance for Bitcoin Purchases

Bitcoin’s price surged following MicroStrategy’s (MSTR, Financial) announcement to issue more stock to fund additional Bitcoin purchases. This news boosted market sentiment, leading to a rise in Bitcoin’s value. Although Bitcoin slightly decreased by 0.17% to $98,088, it had earlier reached an intraday high of $99,876.70. The broader cryptocurrency index, including Ethereum, Solana, and Dogecoin, also rebounded by 0.2% from previous declines.

MicroStrategy plans to increase its authorized shares of Class A common stock and preferred stock, as per a recent SEC filing, to secure more funds for Bitcoin accumulation. Earlier this week, the company purchased $561 million worth of Bitcoin, marking its seventh consecutive week of acquisitions. Year-to-date, Bitcoin has risen 135%, outperforming traditional investments like global stocks and gold.

However, traders warn of potential market volatility due to significant expirations of Bitcoin and Ethereum derivatives contracts. Deribit’s open interest is set to reach a record $43 billion, including $13.95 billion in Bitcoin options and $3.77 billion in Ethereum options.