Bitcoin experienced a slight uptick on Thursday after MicroStrategy outlined its intentions to offer more shares for acquiring more bitcoins. The cryptocurrency climbed 0.32% to $98,747 as of 11:30 a.m. in Singapore after a slight initial slump, with its intraday high seen at $99,776.70.
MicroStrategy, which previously focused on software, became one of the largest holders of Bitcoin after investing in digital assets. Further filed a proposal with the U.S. Securities and Exchange Commission seeking authorization to increase its Class A common stock and preferred stock offerings.
This was announced on the 23rd of December and this move would give the company the capital investment needed for more bitcoins boosting it to be one of the most important companies in the market.
The wider market of digital currencies also marginally edged up. A digital performance Bloomberg Terminal further showed that an index for digital coins including Ether, Solana, and Dogecoin was up by 0.2% after a decline recorded on Wednesday.
The impact of MicroStrategy on Bitcoin fluctuation has increased as more of it buys the cryptocurrency. Earlier this week, the company disclosed more details and announced that it had purchased an additional $561M worth of Bitcoins at an average pricing closer to last week’s all-time high. This was the seventh consecutive week of buying, highlighting the company’s consistent approach to its Bitcoin stock purchase plan.
It has created new hopes in the market. Sean McNulty, the director of trading at Arbelos Markets, said that MicroStrategy's buying approach has now become an element influencing the price of bitcoin. This year alone, Bitcoin has risen by 135% ahead of traditional investments like global stocks and gold and is popular among individual and institutional investors with high returns on investment.
However, a rather cautious mood prevails among traders as important options on BTC and ETH contracts will expire soon. Following this week’s $13.95 billion in Bitcoin options and $3.77 billion in Ether options, set to expire on Deribit, a leading derivatives exchange.
The various parties in the market expect volatile operations as market makers adjust for their hedge positions. McNulty pointed out that short Bitcoin strikes may exacerbate the redlining, thus confusing the short-term movements of the price.