itcoin blasted past its previous record high to hit $70,170 according to price data on March 8th. This topped the token's prior all-time high from the week before of just over $69,000. The surge showed the digital asset maintaining its incredible momentum from the start of the new year.
However, Bitcoin couldn't hold these lofty levels for long and pulled back over the course of the morning. By late morning it had retreated to the $68,000-69,000 range. This initial spike and quick pullback was likely fuelled by technical trading activity rather than fundamental news.
MicroStrategy Doubles Down on Crypto
While Bitcoin saw a sharp yet brief dip earlier in the week, crashing as low as $59,000, bullish sentiment recovered swiftly. This bounce-back supported by large HODLers like MicroStrategy showing continued belief in Bitcoin's potential.
The software company, headed by vocal Bitcoin proponent Michael Saylor, announced on March 6th it had raised $700 million through the sale of convertible senior notes. Carrying an unusually high coupon rate of 0.625%, the debt offering was priced at a sizable 42.5% premium to MicroStrategy's share price.
MicroStrategy plans to direct all net proceeds from this capital raise towards adding more Bitcoin to its already massive holdings. As of February 2024, the company owned around 92,079 Bitcoins acquired for around $3.98 billion, with a market value exceeding $5.3 billion.
MicroStrategy Leads Corporate Bitcoin Acquisition
With its latest purchase, MicroStrategy ramps up its position as the largest corporate holder of Bitcoin. While taking on substantial debt to fund further crypto buys is certainly risky, Saylor and his company remain tremendously bullish on the prospects for digital assets like Bitcoin.
Although MicroStrategy hasn't disclosed specific plans around its newly raised capital, based on previous actions it will almost certainly purchase tens of millions of dollars worth of Bitcoin in the coming weeks. This ongoing institutional demand provides fundamental support for the cryptocurrency's price momentum.
In an interview at a recent conference, Saylor reinforced his conviction that Bitcoin's potential competes not just with gold but major equity benchmarks like the S&P 500 as well. As long as heavyweight backers like MicroStrategy stay committed, Bitcoin seems poised to test new highs. Its ascent past $70,000 underlines how far the original cryptocurrency has come.
