Bitcoin Over $70K; MicroStrategy Issues $700 Million Debt To Buy

Bitcoin broke $70,000 for the first time at 9:30 a.m. EST on March 8. The high was $70,170, shattering last week's $69,000 record. The token momentarily crossed $70,000 before falling throughout the morning. Currently, the pricing is $68,000–$69,000.

New high indicates a big rise from earlier this week. After peaking on March 5, the token plummeted to $59,000. Bitcoin has rebounded days after hitting new highs and losing nearly $10,000.

Bitcoin's price dropped, but it rapidly soared, suggesting investor confidence was not low. Instead, experts are examining alternative causes of this week's price decline.

SkyBridge Capital Founder Anthony Scaramucci noted that arbitrage and excessive fees are driving large outflows from Grayscale Bitcoin Trust (GBTC). Additionally, a huge wallet offered 2010-mined Bitcoins. Both may have caused the price drop.

However, Bitcoin is back to fresh highs and many still believe in it. For months, Michael Saylor and MicroStrategy have bought Bitcoin. The corporation bought additional Bitcoin after selling $700 million in convertible senior notes.

The notes are convertible at roughly $1,500 per share, a 42.5% premium above the announcement day closing price. The notes contain 0.625% coupons.

Since 2020, MicroStrategy has acquired approximately 200,000 Bitcoins worth over $13.5 billion. 3,000 Bitcoins cost $155.4 million in February, its latest buy. The business is the largest corporate Bitcoin holder and plans to keep buying. Saylor said, "Bitcoin is the exit strategy" for the enormous position.

Buying any asset with debt is dangerous, therefore Saylor and his colleagues must be quite optimistic about Bitcoin's future. Bitcoin sentiment remains bullish as MicroStrategy buys and Bitcoin rises.

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