Bitcoin Price Turns Bullish As MicroStrategy Files With The SEC To Buy More BTC

Bitcoin (BTC) price gained momentum yesterday as it skyrocketed over 10% to break above the $21,000 level. The Bitcoin (BTC) price jumped from $19,310 to $21,575. Now, MicroStrategy’s filing with the SEC to sell $500 million in MSTR stocks to buy more Bitcoin has spurred bullish sentiment in the market.

At the time of writing, the Bitcoin (BTC) price is trading strongly near $21,575, up 7% in a day. Bitcoin recovered from the bottom at $18,702 to record a 15% jump in a week.

MicroStrategy Buying More Bitcoin (BTC)

MicroStrategy on September 9 filed a prospectus with the U.S. Securities and Exchange Commission (SEC) to sell $500 million of Class A MSTR shares through investment banks Cowen & Co. and BTIG LLC. The proceeds will be used for “general corporate purposes, including the acquisition of bitcoin.”

The software company continues its bitcoin acquisition strategy even after Bitcoin maximalist Michael Saylor, who stepped down as CEO. Currently, Saylor is chairman of the board of directors and will continue to focus on Bitcoin. Phong Le is the new CEO of MicroStrategy. In fact, the company reported over a $1 billion loss in the second quarter after the BTC price plunged to a record low.

Microstrategy holds 129,699 bitcoins that it acquired for $3.977 billion in total and an average purchase price of about $30,664 per BTC. In fact, 14,589 BTCs are held by MicroStrategy and 115,110 BTCs are held by its subsidiary MacroStrategy LLC.

“We intend to use the net proceeds from this offering for general corporate purposes, including the acquisition of bitcoin, unless otherwise indicated in the applicable prospectus supplement,” the filing stated. “We have not determined the amount of net proceeds to be used specifically for any particular purpose.”

As of September 9, the MSTR stock price was $261.97, up almost 11.77%. In fact, the company’s acquisition of bitcoin made the stock price move as per Bitcoin price. The stock price will likely fall after the stock offering.

BTC Price May Move Over 200-WMA

Bitcoin (BTC) price is still trading under $23,000, the key 200-WMA level. However, the announcement by MicroStrategy is most likely to push the price over 200-WMA.

At the time of writing, the BTC price is trading at $21,575, up 7% in the last 24 hours. Experts believe Bitcoin has turned bullish as the price can rally over $23,500. As per analyst Big Cheds, the BTC price should rally to $22,400 as it tagged 4hr MA 200.