Bitcoin has been hovering just under its all-time highs for a few weeks now, leaving investors guessing if or when it will break the psychological $20,000 per bitcoin barrier.

The bitcoin price has soared this year partly due to companies including business-intelligence firm MicroStrategy
MSTR
and payments giant Square
SQ
adding bitcoin to their corporate treasuries.

Now, the Nasdaq
NDAQ
-listed MicroStrategy has said it’s going to almost double its bitcoin investment, announcing plans to sell up to $400 million of convertible bonds to buy more bitcoin.

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The bitcoin and cryptocurrency community was set alight by MicroStrategy’s shock $425 million bitcoin purchase this summer with the company’s chief executive Michael Saylor embarking on a blistering bitcoin-touting tour.

“I want something that I could put $425 million into for 100 years,” Saylor told bitcoin and cryptocurrency media outlet Coindesk in September.

MicroStrategy’s bitcoin investment has so far proven to be highly lucrative, with the total value of its bitcoin holdings now worth almost $800 million. The company’s stock has tripled since the summer.

As well as doubling-down on its bitcoin-allocation, MicroStrategy is also looking at ways it might offer bitcoin data products and services.

Just last week, MicroStrategy revealed it bought a further $50 million worth of bitcoin, taking its hoard to approximately 41,000 bitcoins, Saylor said via Twitter.

MicroStrategy’s planned $400 million bitcoin investment would increase its holdings by almost 21,000 bitcoin tokens at current prices.

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Bitcoin traders and investors see MicroStrategy’s continued support as bullish for the bitcoin price with many searching for direction after bitcoin’s near-three month bull run stalled at just under $20,000.

“The news around MicroStrategy’s purchase of bitcoins at the price close to $19,500 may become an important factor of bitcoin support this week,” Alex Kuptsikevich, FxPro senior financial analyst, said via email.

“The company bought $50 million worth of coins, while in total they own almost 41,000 bitcoin. Although compared to the traditional market, this is a relatively small investment, nevertheless, such an injection may be a very tangible positive impulse for the crypto market.”

(Excerpt) Read more Here | 2020-12-08 02:04:41
Image credit: source

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