Michael Saylor, one of the co-founders behind MicroStrategy, recently hinted at the possibility of acquiring a significant amount of Bitcoin using proceeds from their latest bond sale.
On November 24th, Saylor took to X to express the company’s need for more Bitcoin, suggesting an imminent purchase.
“We are aiming to increase the number of green dots on SaylorTracker.com.”
Given Saylor’s past track record, where a similar announcement preceded a substantial Bitcoin acquisition of 51.78K BTC, market speculations are pointing towards a sizable $3 billion purchase (approximately 30K BTC) using the recent bond sale funds.
Can This Move Drive BTC to $100,000?
At present, MicroStrategy holds 331,200 BTC, valued at over $32 billion, with plans to reach a total of $42 billion through a 21/21 strategy.
The strategy involves acquiring the first $21 billion using debt instruments such as convertible notes, while the remaining sum will be raised through share issuance. Recent developments indicate a swift progression in executing this ambitious plan.
As a proxy for Bitcoin, MicroStrategy’s stock (MSTR) has witnessed significant growth, largely influenced by the volatility in the cryptocurrency market and its substantial Bitcoin holdings.
According to insights from options analytics firm Amberdata, the implied future volatility of MSTR remains notably high, hinting at potential debt and share issuances to fund additional Bitcoin purchases. This move could have a short-term positive impact on both MSTR and BTC prices.
Amberdata’s report suggested,
“The current market behavior indicates that MSTR might yet engage in something extraordinary, like surging to $1,500 by the end of the year as BTC surpasses $100,000 and experiences FOMO-driven spikes to $120-$140,000.”
Presently, BTC is trading at $98.3K following a 9% surge last week. Despite the anticipation, reaching the $100,000 mark in the spot market remained a challenge over the weekend.
Interestingly, CME Bitcoin Futures hit a new all-time high of $100,170, raising hopes for a potential breakthrough in the spot market soon. Whether Saylor’s plans for a Bitcoin purchase will accelerate the path to this milestone is uncertain.
Meanwhile, MSTR was valued at $421 as of the latest update, reflecting a 6% increase before the US markets opened on November 25th. Market analysts foresee increased interest in the stock ahead of its potential inclusion in the Nasdaq 100 index by December 2024.