Key Points
- MicroStrategy’s co-founder, Michael Saylor, hints at a potential $3 billion Bitcoin purchase from their latest bond sale proceeds.
- Speculations arise whether this move will push Bitcoin towards the anticipated $100K mark.
Michael Saylor, the co-founder of MicroStrategy, has recently dropped a hint about a possible Bitcoin [BTC] purchase using the company’s latest bond sale proceeds.
On November 24th, Saylor suggested that the firm needs to acquire more BTC, creating expectations of a $3 billion (about 30K BTC) buying spree from the latest bond (convertible notes) sale proceeds.
The Impact on Bitcoin’s Value
At present, MicroStrategy holds 331,200 BTC, valued over $32 billion. Previously, the company unveiled a bold strategy to buy $42 billion worth of BTC through a 21/21 strategy.
This plan involves using debt, such as convertible notes, to buy the first half ($21 billion) and issuing shares to fund the remaining amount. Recent activities suggest that the execution of this plan is gaining speed.
MicroStrategy’s stock, MSTR, has seen significant growth due to the volatility of cryptocurrency and its substantial BTC holdings.
Options analytics firm Amberdata has noted that MSTR’s implied volatility (future expectations) has remained high, hinting at the possibility of the firm selling more debt and shares to buy additional BTC. This move could potentially boost MSTR and BTC in the short term.
Bitcoin’s Path to $100K
As of now, BTC is valued at $98.3K after a 9% rally last week. Despite this, the much-anticipated $100K target has remained out of reach in the spot market over the weekend.
However, CME Bitcoin Futures recently hit a new all-time high (ATH) of $100,170, sparking hopes that the spot market could soon reach the $100K milestone. Whether Saylor’s announcement of BTC buying will speed up this process is yet to be seen.
Meanwhile, MSTR is valued at $421 at press time, up 6% before the US market opened on November 25th. Market experts predict more front-running for the stock ahead of its likely inclusion in the Nasdaq 100 before December 2024.