This article is also available in Spanish.
Business intelligence firm MicroStrategy, led by bitcoin (btc) bull Michael Saylor, btc-and-achieves-btc-yield-of-17-8-percent-ytd-now-holds-252220-btc_09-20-2024″ target=”_blank” rel=”nofollow”>announced on Friday successfully raised $1.01 billion through the sale of convertible senior bonds, a strategic move aimed at acquiring more btc and redeeming higher-yielding securities.
MicroStrategy invests an additional $458 million in btc
Of the funds raised, MicroStrategy allocated $458 million to purchase additional bitcoins between September 13 and September 19, further strengthening its position as the largest corporate shareholder of the publicly traded cryptocurrency. As of September 19, the company x.com/saylor/status/1837116692209574119″ target=”_blank” rel=”nofollow”>reported with approximately 252,220 bitcoin, valued at around $15.8 billion.
Related reading
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 their bitcoin purchases.
Along with the new issuance, MicroStrategy is redeeming $500 million in higher-yield 6.125% notes due 2028, reflecting a strategic shift to reduce borrowing costs while simultaneously expanding its cryptocurrency portfolio.
Co-founder and President Michael Saylor has played a pivotal role in shaping MicroStrategy’s identity as a cryptocurrency investment vehicle since the firm first ventured into bitcoin in 2020.
Under his leadership, the company has transformed from a traditional enterprise software maker to a de facto cryptocurrency hedge fund, demonstrating a bold commitment to digital assets amid market fluctuations.
MicroStrategy shares have also seen significant gains this year, doubling in value and outperforming bitcoin's roughly 50% rise over the same period. The latest acquisition follows MicroStrategy's previous purchase of 18,300 bitcoin, valued at approximately $1.11 billion last week.
bitcoin Price Analysis
Following what has been seen as a bullish catalyst, the broader cryptocurrency market has responded positively to the US Federal Reserve's decision. advertisement on Wednesday of a 0.50 basis point rate cut.
This decision contributed to the recovery over the past week after the bitcoin price retraced to $52,640 on September 6. bitcoin has managed to reclaim the $63,000 mark, aiming to consolidate above this critical level over the past 24 hours.
Market analyst Ali Martínez x.com/ali_charts/status/1836962233978606018″ target=”_blank” rel=”nofollow”>points out that this price coincides with bitcoin’s 200-day simple moving average (SMA) on its daily btc/USDT chart, which Martinez identifies as a critical threshold for the anticipated bullish advance 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.
Related reading
To mitigate the risk of a sudden fall, it is essential Support floors Prices of $61,700 have been seen in the short term, and the $60,000 mark serves as an essential threshold to prevent further price declines.
Furthermore, the introduction of new liquidity into the market could significantly boost the price of bitcoin, as the Fed's decision may boost investor confidence in riskier assets like btc.
A successful break and consolidation above $63,000 could set the stage for a possible challenge to the next resistance level at $64,000 in the coming days.
Featured image of DALL-E, chart from TradingView.com
