Bitcoin
$600 Million: MicroStrategy Announces Plan to Raise Money to Buy More Bitcoin
Cole Petersen | Feb 16, 2021 | 18:00
- Bitcoin has seen some mixed price action over the past couple of days, first seeing a massive selloff before testing new highs of over $50,000
- The cryptocurrency has since erased these highs and plunged lower, with bulls failing to take firm control of its price action
- This has taken a toll on altcoins, with many seeing notable losses as the benchmark crypto continues regaining some recently lost market dominance
- Although its price action may look shaky in the short-term, one white swan that could help boost the cryptocurrency is another massive purchase from MicroStrategy
- The company announced today their plans to have a private offering convertible senior notes with the intention of raising $600 million
- All of this money would be put towards acquiring additional Bitcoin
It has been a relatively rough past few days for Bitcoin, with the cryptocurrency’s price action growing increasingly heavy as it struggles to break out of the $50,000 resistance that it has been stuck beneath.
The benchmark digital asset has seen some intense selloffs, but each one has been erased throughout the past few days.
Despite this weak price action, a massive influx of new capital may be imminent, thanks to MicroStrategy. The company announced plans to raise roughly $600 million – all of which would be used to add to their BTC reserves.
Bitcoin Struggles to Gain Momentum Following $50,000 Rejection
At the time of writing, Bitcoin is trading up just under 2% at its current price of $48,800, which marks a notable decline from its daily highs of nearly $51,000.
The selling pressure above $50,000 is significant and has caused the entire market to face some immense inflows of selling pressure as of late.
Until it can flip this level into support, the cryptocurrency could see some immense selling pressure that drives it lower.
This Company is About to Buy Another $600m Worth of BTC
MicroStrategy pioneered the trend of publicly listed companies adding BTC to their balance sheets, and they’re keen on adding even more.
The company announced in a press release today that they are raising another $600m via a convertible senior note offering to use the proceed to buy additional Bitcoin.
“MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoins.”
This could provide Bitcoin with a boost in the mid-term and may even help it break through its $50,000 resistance level.
Featured image from Unsplash. Charts from TradingView.
