Bitcoin Enters Consolidation as MicroStrategy Intensifies BTC Acquisition

16 June 2021 | Updated: 16 June 2021

In yet another Bitcoin (BTC) acquisition strategy, MicroStrategy has filed a registration statement with the US Securities and Exchange Commission (SEC) to launch an “‘at the market’ securities offering for flexibility to sell up to $1 billion of its class A common stock over time.”

The firm’s class A common stock trades on the Nasdaq Global Select Market with the ticker sign NASDAQ: MSTR. The announcement of the new undertaking came on Monday.

In its filing with the SEC, MicroStrategy detailed how it would use the proceeds from the sale, noting that:

“We intend to use the net proceeds from the sale of any class A common stock offered under this prospectus for general corporate purposes, including the acquisition of bitcoin, unless otherwise indicated in the applicable prospectus supplement.”

At press time, MicroStrategy holds about 92,079 Bitcoins. This massive Bitcoin holding resides in a newly-formed subsidiary, Macrostrategy LLC.

The company also recently announced that it has just rounded off a $500 million offering of 6.125% senior secured notes and that the proceeds will go into the acquisition of more BTC. At the current price of BTC, the proceeds from the notes sale could deliver about 12,500 BTC. This undertaking would bring MicroStrategy’s total Bitcoin holding above the 100,000 BTC mark.

Key Bitcoin Levels to Watch — June 15

After posting a healthy rebound from the $35,000 on Sunday, Bitcoin is starting to show signs of exhaustion. The benchmark cryptocurrency has a hard time maintaining a break above the $40,500 level and has fallen into consolidation between $40,500 and $39,800.

BTCUSD – Hourly Chart

Except if the primary cryptocurrency posts a sustained break above the $40,500 resistance over the coming hours, we should expect to see a continuation of the sideways momentum and a possible dip to the upper-$38,000 area.

Meanwhile, our resistance levels are at $40,500, $41,000, and $42,000, and our key support levels are at $39,800, $39,500, and $38,500.

Total Market Capitalization: $1.73 trillion

Bitcoin Market Capitalization: $756.4 billion

Bitcoin Dominance: 44.4%

Market Rank: #1


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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.