Bitcoin Fluctuates Despite MicroStrategy's Plans to Buy It by Issuing More Shares

 

 

According to a Dec. 23 document submitted to the Securities and Exchange Commission, MicroStrategy requested to add the number of authorized shares of Class A common stock and preferred stock. This action would help this software maker transform into a Bitcoin stockpiler more quickly.

 

Sean McNulty, head of trading at liquidity provider Arbelos Markets, explained that MicroStrategy's plan to purchase more Bitcoin through share issuances made the market optimistic about Bitcoin, driving Bitcoin higher.

 

MicroStrategy announced earlier this week that it purchased an additional $561 million of digital tokens, setting a record for seven consecutive weeks of Bitcoin buying.

 

However, some traders warned that the market could experience large volatility as many open positions in cryptocurrency derivatives were about to expire. On Friday, a record $43 billion in open positions will expire on the derivatives exchange Deribit, including $13.95 billion in Bitcoin options and $3.77 billion in Ether options.

 

Concerning this, McNulty added that market makers could relax hedges and short Bitcoin, making Friday's market volatile.

 

As of press time, Bitcoin falls 2.27% at $95,746.31 retreating from an intraday high of $99,876.70. Ether falls 3.19%. Dogecoin, the most popular meme-coin, falls 4.12%.