The price of Bitcoin gained more strength from Friday as it took over speed from Ethereum. The asset added more than 10% and broke through the $21,000 resistance area. The recent plea of MicroStrategy before the US SEC is now for it to be able to sell off $500 million worth of MSTR shares so it can purchase more BTC.
Bitcoin Regains Bullishness
The request instigated a bullish round in the crypto market. As of the time of putting this together, Bitcoin trades at $21,575 as it goes up by 7% on the day. Bitcoin has, thus, rebounded by 15% within one week from $18,702.
MicroStrategy submitted its proposal to the US Security and Exchange Commission on the 9th of September. It proposed to dispose of $500 million worth of its MSTR shares via an agreement with BTIG LLC and Cowen & Co. The firm said proceeds from the sales will be expended on corporate endeavors which include purchasing Bitcoin.
MicroStrategy is going ahead with its plan of purchasing Bitcoin after its former CEO, Michael Saylor, stepped down. For now, Taylor still serves as the firm Board of Directors’ chairman, while Phong Le serves as the CEO. MicroStrategy recorded a loss of more than $1 billion during the second quarter at the height of the crypto winter.
The firm has a holding of 129,699 BTC that it purchased at an average of $30,664/BTC and $3.977 billion in all. Microstrategy holds a total of 14,589 Bitcoin tokens while its subsidiary firm, MicroStrategy LLC, holds 115,110 of the same tokens.
MSTR Shares Catches the Spark
The submission before the US SEC said that MicroStrategy plans to use proceeds from its sale to pursue general official plans which include purchasing Bitcoin. It also said the firm is yet to decide on any amount that would go into what particular purpose.
As of Friday, 9th of September, MSTR shares sold for $261.97 as it gained nearly 11.77%. the firm’s decision to acquire Bitcoin also pushed the stock’s price higher in relation to Bitcoin’s move up. The price is likely to get back down after the offer ends.
Bitcoin still trades below $23,000 and the 200 weekly moving average area. But as things are panning out, the MicroStrategy announcement might push it beyond the 200 weekly moving average.
Bitcoin currently trades at $21,575, gaining 7% over 24 hours. Analysts say Bitcoin has become bullish again since there is a possibility of the price rallying beyond $23,500.