Despite a 106% surge to $473 earlier this month, MicroStrategy’s stock (MSTR) fell by 16% on Thursday but rebounded 3% in after-hours trading.
Michael Saylor, the Executive Chairman of MicroStrategy, made the announcement that the company has successfully completed the $3 billion issuance of their senior convertible notes in order to purchase additional Bitcoins. When the news broke, the price of Bitcoin surged to a new all-time high of $99,314 levels, yielding a further 1.4% gain.
After a 106% surge to an all-time high of $473 in November, the MSTR stock experienced a precipitous decline of 16% on Thursday. The direction of the stock, however, changed in the after-hours period due to the expectation of a $3 billion injection into the Bitcoin market.
Michael Saylor’s MicroStrategy announced earlier today that they successfully completed the issuance of 0% convertible notes, with a maturity date of 2029. This comes as a part of the company’s intentions to acquire Bitcoin in the near future.
MicroStrategy’s Michael Saylor To Buy $3 Billion In Bitcoin
The Bitcoin holding company announced earlier this week that it has acquired 51,780 Bitcoins, representing an astounding investment value of $4.6 billion. As a result, the organization has maintained a total of 331,200 bitcoins as part of its reserves.
The specialists who follow the cryptocurrency industry believe that Michael Saylor will invest this additional three billion dollars in Bitcoin in a short amount of time. In that case, this would cause the price of Bitcoin to jump even higher, reaching levels of $135,000 by the end of the year.
Taking into consideration the fact that Saylor is well-known for purchasing Bitcoin at any price, the announcement about the subsequent mega-Bitcoin purchase could occur at any moment. Many multinational organizations, including Metaplanet, Semler Scientific, and others, have adopted Michael Saylor’s Bitcoin approach.
All of these corporations have included Bitcoin on their balance sheets. Additionally, Saylor has approached the large technology company Microsoft (NASDAQ: MSFT) in an effort to assist them with their Bitcoin acquisitions. For the purpose of determining the outcome of this dispute, Microsoft will have a shareholder vote the following month, in December.
MSTR Stock Is Wall Street’s Favourite
The Microstrategy stock, also known as MSTR, has been dominating the Bitcoin Industrial Complex this week, thanks to its rising trading volume, which has caused it to storm Wall Street. In terms of trading volumes, it has also left behind the companies that are considered the most liquid among the “Magnificent 7” group.
Yesterday, the Bitcoin Industrial Complex had a trading volume of $70 billion, according to Eric Balchunas, a senior ETF strategist at Bloomberg. MSTR was the driving force behind this achievement. In addition to the shares of MSTR, the leveraged exchange-traded funds (ETFs) of MicroStrategy have also performed exceptionally well on Wall Street.
ETFs that are associated with MicroStrategy accounted for fifty billion dollars of the total activity that occurred throughout the day. The two leveraged MSTR ETFs, the T-Rex 2X Long MSTR Daily Target ETF (MSTU) and the Defiance’s 2X Long ETF (MSTX), saw trades of three billion dollars and two billion dollars, respectively.
Just to put things into perspective, their total volume of $6 billion in the first two hours alone was twice as much as that of Apple (AAPL).The trading volume for the BlackRock Bitcoin ETF (IBIT) reached $5 billion, making it the second-highest day in the history of the fund.
Over the course of yesterday, the total inflows into spot Bitcoin ETFs surpassed one billion dollars, with IBIT contributing more than six hundred million dollars. This week’s launch of Bitcoin exchange-traded fund (ETF) options continues to garner a lot of attention, and IBIT options continue to see robust trading volumes.
Peter Schiff Slams the Stock Rally
During the trading session that took place on Thursday, the MSTR stock finished with a loss of 16.6%, falling below $400. After the introduction of the convertible notes, the price of the stock increased by three percent during the aftermarket working hours.
The implied volatility of MicroStrategy reached a staggering 200% over the past day, indicating an expected daily price fluctuation of 12.6%. The decrease has further increased the implied volatility to 270%, indicating an anticipated daily movement of 16%, according to reports from 10X Research.
