Bitcoin price holds above $65K as MicroStrategy increases latest stock sale to $700 million

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  • Bitcoin price remains above the $65,000 threshold as MicroStrategy makes headlines for the second time this week.  
  • BTC could have another shot at $69,000 threshold as buyer momentum continues to rise.
  • The voluminous acquisition could inspire FOMO in the market ahead of the halving.

Bitcoin (BTC) price continues to have more tailwinds that could catalyze its move back to the $69,000 threshold. In the latest, MicroStrategy has reported advancement towards its recently announced intention to absorb more BTC. 

Also Read: Bitcoin Price Outlook: Almost $521 million in total liquidations as BTC hits new ATH

MicroStrategy increases latest stock sale to $700 million to buy Bitcoin 

In a March 5 announcement, MicroStrategy, one of the largest BTC holders in the world, revealed plans to absorb more Bitcoin (BTC). The firm’s CEO, Michael Saylor, cited a proposed private offering of $600 million in convertible senior notes.

Barely 48 hours later, Saylor announced having advanced with the plans, detailing the pricing of the offering.

Highlights of the report include:

  • The offering was upsized from the previously announced offering of $600 million to $700 million.
  • The notes will be sold in a private offering to persons reasonably believed to be qualified institutional buyers.
  •  Initial purchasers have access within a 13-day period beginning on, and including, the date on which the notes are first issued.
  • The offering is expected to close on March 8, 2024, subject to satisfaction of customary closing conditions.
  • The notes will be unsecured, senior obligations of MicroStrategy, bearing an interest rate of 0.625% per annum, payable semi-annually. 
  • The notes will be convertible into cash, shares of MicroStrategy’s class A common stock (initially be 0.6677 shares per $1,000 principal amount of notes), or a combination of cash and shares of MicroStrategy’s class A common stock, at MicroStrategy’s election. 
  •  Estimated net proceeds from the sale of the notes will be approximately $684.3 million. This will be used to acquire additional BTC and for general corporate purposes.

The highlight of the announcement was that the firm added a stark $100 million to the aggregate principal amount. While this was unexpected, it is not really a surprise considering the firm’s strong liking and bullishness toward BTC.

In January, Saylor sold $216 million worth of the company’s stock, MSTR, to buy more Bitcoin. With this manner of BTC bullishness, the firm is steadily edging toward meriting S&P 500 inclusion.

Cryptocurrency metrics FAQs

The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.

Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.

Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.

Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.

Bitcoin price could retest $69,000

As optimism continues to abound in the cryptocurrency market, Bitcoin price could retake the $69,000 threshold. One analyst on X, @Coinmamba, says, “The probability of Bitcoin topping at $69k twice is very low,” adding that the next retest could see the pioneer cryptocurrency shatter this blockade.

The likely move would be to clear the $69,325 all-time high, recorded on March 5, with the potential to tag the $70,000 psychological level. Such a move would denote an approximate 5% move above current levels.

BTC/USDT 1-day chart

A close look at the Relative Strength Index (RSI) shows that buying momentum is rising after the indicator bounced around the 70 threshold. If this trajectory sustains, the RSI could soon cross above the yellow band of the signal line. Such a crossover would revitalize the uptrend since it is interpreted as a buy signal.

BTC RSI 1-day chart

On the flip side, however, if traders start cashing in on the gains, Bitcoin price could drop to retest the $65,000 threshold. In a dire case, BTC could nosedive to the $60,000 psychological level before another possible leg north. 


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