Bitcoin declines even as MicroStrategy plans to sell more shares

(Bloomberg) – Bitcoin (Bitcoin-dollar) fell even as cryptocurrency storage MicroStrategy Inc. (MSTR) plans to issue more shares, a move that would allow it to purchase more tokens.

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The digital asset fell about 3% to $95,420 as of 7:12 a.m. in New York on Thursday. The broader measure of cryptocurrencies that includes smaller tokens including Ethereum, Solana and meme favorite Dogecoin fell about 3%.

“The market is looking forward to MicroStrategy’s bitcoin purchases, and that was the biggest reason the market went higher,” said Sean McNulty, director of trading at liquidity provider Arbelos Markets. “Watching MicroStrategy news has become a big part of my day.”

MicroStrategy is seeking permission to increase the number of authorized shares of common stock and Class A preferred stock, according to a Dec. 23 filing with the U.S. Securities and Exchange Commission. Such a move would give the company, which has transformed itself from a software maker into a Bitcoin aggregator, more power.

MicroStrategy announced earlier this week that it purchased an additional $561 million of the digital token at an average price close to last week’s record high. This marked the seventh straight week of buying.

Bitcoin has risen 135% so far this year, outpacing the returns of traditional investments such as global stocks and gold.

Some traders warned that markets could become volatile the next day due to the expiration of open interest contracts in Bitcoin and Ethereum derivatives.

On Friday, a record $43 billion in open interest, including $13.95 billion in bitcoin options and $3.77 billion in ether options, will expire on derivatives exchange Deribit.

“Market makers could unwind their hedges and short Bitcoin strikes which could make the market volatile on Friday,” McNulty said.

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