MicroStrategy Plans to Buy More Bitcoin to Add to Its $14 Billion
MicroStrategy are cementing themselves as the biggest of Bitcoin whales with plans to buy millions of dollars worth of the coin.
MicroStrategy seems to believe that Bitcoin’s price will only go up, as they started selling second notes to free up funds for more Bitcoin buying.
The software company is the largest single holder of Bitcoin in the world with more than $14 billion in the cryptocurrency stored away already. The company announced that it would be selling its convertible notes in order to grab up more Bitcoin. This may be an opportune time, since Bitcoin’s bullish trend is slowing down for the moment close to its record high mark. According to many market analysts, Bitcoin is only going to go higher and should see no significant price correction.
This is the second time in two weeks that MicroStrategy has said it would be buying up Bitcoin off of convertible notes sales. Their current plan is to take $500 million in convertible senior notes that have not been secured and use the proceeds of that sale to add more Bitcoin to the billions they already own.
On March 8th, the firm bought up $821 million in Bitcoin using funds freed up by selling convertible senior notes. Those notes were due in 2030, while the ones to be used for this week’s sale are due in 2031.
Is This the Right Time to Buy Bitcoin?
There is concern that Bitcoin may have topped out and may not go much higher. The coin has been on a bull trend for months now, so it makes sense to think that it is running out of steam. However, with major investors like MicroStrategy buying so much of it up, with more to come, the coin’s price could easily keep on climbing.
Bitcoin benefits from greater public interest and whale purchases like MicroStrategy’s buying plan. These drive up the prices. Investors should be paying attention to the upcoming halving event which will also likely drive up Bitcoin’s price. Even though the coin has broken its all-time high record over the past few days. There is still a high probability that it will shoot up in late April when the halving event hits.
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