- MicroStrategy has expressed plans to sell up to $750M of its publicly traded equity and bonds, possibility to increase its Bitcoin holdings.
- Michael Saylor continues to soak his firm in crypto, using the strategy of selling stock and pouring the proceeds into BTC.
- Bitcoin price has moved from $29,200 to the $29,700 range after the announcement from MicroStrategy, a significant shift in the hourly timeframe.
Bitcoin (BTC) price has made a commendable move in the lower timeframe, rising despite the overall lack of volatility. With a little push from software developer firm MicroStrategy, the flagship crypto has reclaimed levels last seen around July 24.
Also Read: US Treasury yield rises while Gold takes a hit after weak US data; Could Bitcoin price suffer too?
Bitcoin price movements solidify in the lower timeframe
Bitcoin (BTC) price has finally edged north after recording fresh lows at the start of the week. The move draws the attention of traders and investors from the higher timeframes to the lower variants, where we can see some action.
Bitcoin’s latest spike, defined as a single quick motion of short duration, followed a revelation from MicroStrategy and its Chairman Michael Saylor in an SEC filing on the evening of August 1 during the US session about plans to increase its BTC holdings.
JUST IN - MicroStrategy to raise up to $750 million to buy more #Bitcoin and fund other corporate purposes. pic.twitter.com/gtMzwC5vcG
— Bitcoin Magazine (@BitcoinMagazine) August 1, 2023
Michael Saylor and his firm have been one of the front-lining champions for BTC, whales with a bold strategy to grow their Bitcoin portfolio whether the market is trending or not. In his latest declarations in the filing, Saylor has indicated plans to sell his company’s stock worth approximately $750 million and comprising the company’s equity and bonds to Cowen and Company, LLC, Canaccord Genuity LLC, and Berenberg Capital Markets LLC.
Drawing a paragraph from the filing:
We intend to use the net proceeds from this offering for general corporate purposes, including the acquisition of bitcoin and working capital, and, subject to market condition.
Noteworthy, MicroStrategy is a publicly traded company, meaning the sales will take place in the stock market and be available to the general public. With the stock readily available to all interested investors, the company is guaranteed relatively easy access to capital. This comes as investors actively trade stocks on public exchanges, making it easy to identify investors looking to purchase new offerings, fund expansions, or both.
Private companies may not enjoy such privileges, compelling them to present such propositions to their own investors, asking for an in-house contribution of additional funds, or having to secure a debt to raise funds. There are many capital constraints and procedures on this side of the fence.
Bitcoin price reaction to the news
Bitcoin (BTC) price has responded to the news, breaking out and flipping the resistance levels due to the 50-, 100-, and 200-day Exponential Moving Averages (EMA) at $29,188, $29,234, and $29,342, respectively, into support. Further north, the flagship crypto has extended a neck high to tag the $29,789 barricade, levels last seen around June 24.
The Relative Strength Index (RSI) at 78 is concerning, but the price could still increase. This aligns with Welles Wilder’s interpretation of an overbought asset on the RSI indicator, marking that confirmation to a point when the RSI crosses below the 70 level to the downside.
Similarly, the histograms of the Awesome Oscillators are in the positive zone with large volumes, showing that bulls are leading the market.
BTC/USDT 1-hour chart
Conversely, if retail traders begin to cash in on the gains, though small, Bitcoin price could correct south, possibly falling back under the foothold of the three EMAs.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.