Bitcoin (BTC) showcased a robust surge to reach one-week highs in the $29,700s on Tuesday, driven by the announcement from US software company MicroStrategy regarding its intention to significantly increase its BTC holdings.
MicroStrategy unveiled its plans through a filing with the US Securities and Exchange Commission (SEC), indicating its intention to sell up to $750 million worth of stock, with a portion of the proceeds earmarked for additional bitcoin purchases.
Having accumulated 152,333 BTC by June 27, MicroStrategy holds approximately 0.0078% of the total circulating supply of around 19.44 million Bitcoin tokens.
The company’s journey into bitcoin accumulation commenced in August 2020, with its former CEO and current executive chairman, Michael Saylor, emerging as a notable and vocal advocate for the cryptocurrency.
The filing stated that the software firm intends to utilize the net proceeds from the stock offering for general corporate purposes, which includes acquiring bitcoin and bolstering working capital.
Should MicroStrategy indeed secure $750 million and choose to allocate it entirely to Bitcoin, the company could acquire roughly 25,000 tokens at the current market price.
Such a large-scale market entry often drives prices higher, a trend that was evident in Bitcoin’s response to the announcement on Tuesday.
At its present level in the $29,700s, BTC has surged over 4%, equivalent to $1,200, from its recent Tuesday lows located in the $28,500s.
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