Business intelligence firm MicroStrategy, led by Bitcoin (BTC) bull Michael Saylor, announced On Friday, a successful raise of $1.01 billion through the sale of convertible senior notes, a strategic move aimed at acquiring more BTC and redeeming higher-yielding bonds.
MicroStrategy Invests Additional $458 Million in BTC
Of the funds raised, MicroStrategy allocated $458 million to purchase additional Bitcoin between September 13 and 19, further cementing its position as the largest publicly traded corporate holder of the cryptocurrency. As of September 19, the company reported holding approximately 252,220 Bitcoins, valued at around $15.8 billion.
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The convertible notes issued by MicroStrategy have an interest rate of 0.625% and will mature in 2028. This is the fourth time this year that the company has resorted to the convertible note market to finance your Bitcoin acquisitions.
In conjunction with the new issuance, MicroStrategy is redeeming $500 million of higher-yield 6.125% notes due in 2028, reflecting a strategic shift to reduce borrowing costs while expanding its cryptocurrency portfolio.
Co-Founder and President Michael Saylor has played a key role in shaping MicroStrategy’s identity as a cryptocurrency investment vehicle since the company first ventured into Bitcoin in 2020.
Under his leadership, the company has transformed from a traditional enterprise software maker to a de facto crypto hedge fund, demonstrating a bold commitment to digital assets amid market fluctuations.
MicroStrategy stock has also seen significant gains this year, more than doubling in value and outpacing Bitcoin’s roughly 50% increase over the same period. The latest acquisition follows MicroStrategy’s strategy previous purchase of 18,300 Bitcoins, valued at around $1.11 billion last week.
Bitcoin Price Analysis
Following what was considered a bullish catalyst, the broader cryptocurrency market responded positively to the US Federal Reserve’s moves. announcement on Wednesday from a 0.50% basis point rate cut.
This decision contributed to the recovery last week after the price of Bitcoin dropped to $52,640 on September 6. Bitcoin managed to reclaim the $63,000 mark, aiming to consolidate above this critical level over the past 24 hours.
Market Analyst Ali Martinez points that this price coincides with Bitcoin’s 200-day simple moving average (SMA) on its BTC/USDT daily chart, which Martinez identifies as a key threshold for the anticipated bull run in the latter part of the year.
Historically, failures to hold this support level have led to significant corrections, as seen in 2020, 2018, and 2014. Martinez warns that a rejection at this level could signal trouble for Bitcoin’s future price trajectory.
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To mitigate the risk of a sharp decline, key support floors were seen at $61,700 in the near term, with the $60,000 mark serving as a key threshold to prevent further price declines.
Furthermore, introducing new liquidity into the market could significantly increase the price of Bitcoin, as the Fed’s decision could increase investor confidence in riskier assets like BTC.
A successful break and consolidation above $63,000 could set the stage for a potential challenge of the next resistance level at $64,000 in the coming days.
Featured image of DALL-E, chart from TradingView.com
