Bitcoin edged higher on Thursday, climbing 0.32% to $98,747 as of 11:30 a.m. in Singapore, following an announcement from MicroStrategy to issue more shares to fund additional Bitcoin purchases. Earlier in the session, Bitcoin touched an intraday high of $99,876.70.
A broader cryptocurrency index, including tokens like Ether, Solana, and Dogecoin, rose 0.2%, rebounding from Wednesday’s losses.
“The news of MicroStrategy planning to issue more shares next year to buy Bitcoin is driving prices up,” said Sean McNulty, director of trading at Arbelos Markets. “The market is anticipating these Bitcoin purchases, which has become the biggest driver for the rally.”
MicroStrategy has proposed increasing the number of authorized shares of Class A common stock and preferred stock, as outlined in its Dec. 23 SEC filing. This move is expected to give the company, known for its pivot from software to Bitcoin accumulation, more resources to expand its holdings.
Earlier this week, MicroStrategy announced a $561 million Bitcoin purchase, marking its seventh consecutive week of buying. The company bought at an average price near last week’s record high.
Bitcoin has surged 135% in 2024, outperforming traditional assets like global equities and gold.
Despite the optimism, traders warned of potential market volatility. On Friday, a record $43 billion in open interest, including $13.95 billion in Bitcoin options and $3.77 billion in Ether options, is set to expire on Deribit, the derivatives exchange.
“Market makers unwinding hedges and shorting Bitcoin strikes could create choppy trading conditions on Friday,” McNulty cautioned.