Bitcoin dropped in price briefly after Microstrategy announced on Thursday its plans to sell more shares. According to the company, the funds generated from the sale will be funneled into the purchase of more Bitcoin, a move that will most likely propel the asset’s price.
According to a report by Bloomberg, the leading cryptocurrency registered a 3% drop to hit $95, 000 around 12:07 in New York. Like Bitcoin, the bearish momentum affected other altcoins like Solana and Ethereum, with Dogecoin also seeing a 3%.
Bitcoin drops as the market anticipates a choppy friday
The company’s push to help Bitcoin sentiment is likely not over seeing that it is still actively pushing to purchase more portions of the asset. Arbelos Markets trading director Sean McNulty noted that the new optimism is a result of the Microstrategy Bitcoin purchase that will happen soon.
McNulty said the anticipation is the reason why the market is up now. “The market is being forward-looking about MicroStrategy’s Bitcoin buys, and that’s been the single biggest reason for the market to go up. Watching MicroStrategy news is becoming a big part of my day,” he said.
According to its filing with the Securities and Exchange Commission (SEC) on December 23, the company is attempting to increase the number of its authorized Class A common stock and preferred stock. If the SEC gives the go-ahead, Microstrategy will be allowed to issue more shares, which will enable the firm to raise more money. Once all that is done, the company can continue its Bitcoin purchase.
Microstrategy recently made a $561 Bitcoin purchase this week, buying the asset at an average close to its last week peak. The move signified its seventh consecutive Bitcoin bulk purchase. Bitcoin, on its part, has jumped 135% this year, outpacing conventional stock markets and precious metals.
However, the market is expected to be turbulent as about $13 billion worth of Bitcoin open interests are about to expire. Traders and experts have warned about the turbulence, as seen in previous years. McNulty predicted that the market could be choppy on Friday, noting that Market markers could unwind their hedge.