MicroStrategy Purchases 10,107 Bitcoin for $1.1 Billion as Price Reaches $101,628
Bitcoin price experienced volatility, dipping below $98,000 and resulting in nearly $1 billion in liquidations. However, it rebounded by approximately 4% to around $101,628. The market shows increased complexity with potential for a reversal if Bitcoin consistently closes above $104,400.
MicroStrategy's Long-Term Strategy
- MicroStrategy sold 2.76 million shares, raising about $1.1 billion.
- The funds were used to acquire approximately 10,107 Bitcoins, bringing the total holdings to 471,107 Bitcoins valued at about $47 billion.
- CEO Michael Saylor confirmed that these Bitcoins are not for sale.
- MicroStrategy plans to offer 2.5 million shares of Class A Perpetual Strike Preferred Stock, which will have a liquidation preference of $100 per share and fixed dividends.
- Proceeds from this offering will be used to purchase additional Bitcoins.
- Shareholders approved increasing Class A shares from 330 million to over 10 billion.
Market Outlook
- Bitcoin demand is rising amid global fiat currency devaluation.
- The decentralized nature of Bitcoin attracts more participants seeking stable monetary alternatives.
- The Trump administration is considering Bitcoin as a strategic reserve asset to help manage national debt exceeding $35 trillion.
- With a capped supply of 21 million Bitcoins and significant long-term holding, institutional interest may drive further bullish sentiment.