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Tuesday, October 19, 2021

Bitcoin pumps and MicroStrategy goes on a shopping spree

For the second day in a row, Bitcoin is writing green numbers. This should not least be borne by MicroStrategy.

The Bitcoin bulls are sniffing the morning air again. A look at the daily chart reveals: yesterday’s pump wasn’t a flash in the pan, but could well be the long-awaited turnaround. Because on Tuesday, June 15, both digital gold and the market as a whole are in the green.

At the time of going to press, the key crypto currency is quoted at 40,300 US dollars (USD) and is thus 1.5 percent up on a daily basis. Compared to a week ago today, the growth is even more impressive: Bitcoin has climbed over 20 percent in the last seven days. That makes investors happy.

The total crypto market capitalization is up around 4.2 percent at 1.74 trillion US dollars and confirms the positive trend in the market.

Again and again MicroStrategy

The reason for the positive sentiment is an old friend. The CEO of MicroStrategy (Nasdaq ticker: MSTR), who is loved by Bitcoiners as “Gigachad”, just can’t get his neck full. As Michael Saylor announced via Twitter, the company is now planning to tap into another form of capital procurement: The talk is of an increase in share capital.

While MicroStrategy previously only put fixed-rate bonds into circulation, the company also plans to issue new shares in the future. And plenty of it.

Believe it or not, the company plans to put new stocks valued at a whopping $ 1 billion. Considering that MSTR is currently capitalized at $ 5.8 billion, that’s a big hit. The targeted capital increase would increase the company value by almost 20 percent.

Given the company’s aggressive purchasing policy, it’s almost idle to write, but of course the Michael Saylor-led company plans to invest some of the proceeds from the stock issue in BTC. This emerges from a securities prospectus that MicroStrategy published yesterday, Monday, June 14th. It says:

We intend to use the net proceeds from the sale of Class A common shares offered under this Prospectus for general corporate purposes, including the acquisition of Bitcoin, unless otherwise stated in the relevant Supplement.

The key combination CTRL + F proves that the software company is serious about its BTC strategy: the term “Bitcoin” appears a total of 120 times in the 82-page securities prospectus.

Blue whale MicroStrategy

But that’s not all of MSTR coping . Because the 500 million USD from the latest bond sale should soon flow into BTC. As the company announced in a corresponding press release, it was able to completely sell off the 6.125 percent interest – and now has additional liquid funds to go shopping on the Bitcoin market. If the company remains true to its previous purchasing policy, those responsible should not invest the newly acquired liquid funds directly, but piece by piece. Dollar cost average for professionals, so to speak.

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It is true that the company is once again entering volatile waters with its most recent acquisition aspirations. However, Saylor et al. Do an important service to the Bitcoin market. Because buy orders above the billion US dollars should not leave the crypto market without a trace.

According to the company, MSTR currently holds 92,079 BTC.

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