Bitcoin’s price has surged amidst the ongoing low volatility in the cryptocurrency market. The catalyst behind this remarkable move is none other than software developer firm MicroStrategy, which has just unveiled its ambitious plan to raise up to a staggering $750 million.
But why? Well, the company intends to use the proceeds to buy more Bitcoin, among other purposes, as disclosed in a filing with the U.S. Securities and Exchange Commission late Tuesday.
Intention Behind This Massive Capital Infusion? To Buy More Bitcoin!
MicroStrategy, led by the visionary Chairman Michael Saylor, has been a vocal advocate for Bitcoin, consistently expanding their cryptocurrency portfolio, regardless of market conditions.
The company announced officially to sell its stock to Cowen and Company, LLC, Canaccord Genuity LLC, and Berenberg Capital Markets LLC. The net proceeds from this offering will be utilized for general corporate purposes, including acquiring more Bitcoin and supporting working capital, subject to market conditions.
However, by selling additional stock, the software company can support its rising Bitcoin holdings. As publicly traded firm MicroStrategy’s stock sales make it easier to raise funds, which should improve its Bitcoin investment.
As of July 31, the company has 152,800 bitcoin, which is currently worth around $4.5 billion. This latest move showcases their unwavering faith in the future of Bitcoin and the transformative potential it holds.
How Crypto Market Reacted to the News?
The market has reacted positively to this momentous announcement, propelling not only Bitcoin’s price higher, but also raising the bar for Ethereum and Dogecoin. The leading cryptocurrency has broken through key resistance levels, gaining momentum and capturing the attention of investors worldwide.
Notably, Bitcoin’s price has surged following the news, breaking through important resistance levels at $29,188, $29,234, and $29,342, turning them into support. The cryptocurrency has also reached a significant barrier at $29,789, which was last seen around June 24.
Overall, MicroStrategy’s bold move is sending ripples through the financial landscape, reaffirming Bitcoin’s status as a viable alternative investment. As more corporations and investors follow suit, the cryptocurrency ecosystem is poised for a potential surge in interest and adoption.
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