Bitcoin rises as MicroStrategy plans new share issuance to fund crypto purchases

Bitcoin surged on Thursday after an announcement by MicroStrategy, the prominent business intelligence firm and major Bitcoin holder, about its plans to issue new shares. This move is aimed at enabling the company to further expand its Bitcoin holdings, reinforcing its reputation as one of the largest institutional advocates for the cryptocurrency.

The price of Bitcoin rose 0.32% to $98,747 as of 11:30 a.m. in Singapore, after briefly nearing $99,877 during earlier trading. A broader cryptocurrency index, which includes assets like Ether, Solana, and the popular meme coin Dogecoin, climbed 0.2%, recovering from Wednesday’s losses.

"The announcement that MicroStrategy plans to issue additional shares next year to fund more Bitcoin acquisitions has fueled the latest price surge," said Sean McNulty, Head of Trading at liquidity provider Arbelos Markets to Bloomberg.

He added, "The market is closely tracking MicroStrategy’s Bitcoin purchasing activity—it’s become a key driver of daily price movements. Following the company’s updates has essentially become routine for traders."

MicroStrategy’s Bitcoin strategy

In a December 23 filing with the U.S. Securities and Exchange Commission (SEC), MicroStrategy revealed its intention to seek approval to increase its authorized shares of both common and preferred stock. This step would grant the firm additional liquidity, supporting its transformation from a software company to a major Bitcoin accumulator.

Earlier this week, MicroStrategy disclosed the purchase of $561 million worth of Bitcoin at an average price near the recent record high. This marks the seventh consecutive week of net Bitcoin acquisitions, with total purchases this month reaching a staggering $5.4 billion—a record-breaking pace for the company.

Bitcoin’s market performance

Bitcoin has soared 135% since the start of the year, significantly outperforming traditional investment assets such as global equities and gold. Its strong performance reflects growing institutional adoption and investor interest, despite broader market challenges and regulatory uncertainties.

Traders are bracing for heightened market volatility on Friday as a record net open interest in Bitcoin and Ether derivatives—valued at $43 billion—is set to expire on Deribit, the leading crypto derivatives exchange. This includes $13.95 billion in Bitcoin options contracts and $3.77 billion in Ether options contracts.

"Market makers are likely to unwind hedge positions and potentially engage in short selling of Bitcoin, which could lead to significant market fluctuations," McNulty cautioned. "Friday’s trading session may prove to be highly volatile as these derivatives contracts settle."

MicroStrategy’s continued commitment to Bitcoin underscores the growing trend of institutional adoption in the cryptocurrency space. The company’s actions have become a critical focal point for the market, influencing not only Bitcoin prices but also broader sentiment in the digital asset ecosystem. As institutional players like MicroStrategy double down on their crypto strategies, Bitcoin’s role as a digital asset of choice appears increasingly secure.