Microstrategy’s Plans To Increase Its Bitcoin: BTC/USD (BTC=X) Holdings

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Bitcoin
Ticker: BTC=
Price: $18219.67

Bitcoin News

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The Nasdaq-listed business intelligence and mobile software company already holds 40,824 bitcoin (BTC) in reserve, valued at $776 million at current prices of around $19,000 per each bitcoin.

On Dec. 4, Microstrategy bought another 2,574 BTC for $50 million, adding to its initial $425 million haul from August and September. The firm holds the largest bitcoin reserves of any publicly traded company, according to bitcointreasuries.org.

Now, the company is practically borrowing from “monopoly money” in order that it buys more bitcoin. At existing prices, $400 million would add around 21,000 BTC to Microstrategy’s portfolio.

“Microstrategy intends to invest the net proceeds from the sale of the notes in bitcoin in accordance with its treasury reserve policy pending the identification of working capital needs and other general corporate purposes,” it said in a statement.

A convertible note is a short-term debt that converts into equity or cash. The note is essentially a hybrid of debt and equity, experts say. The Microstrategy convertible notes will be issued to qualified institutional buyers. They will mature on Dec. 15, 2025, with interest paid twice a year.

Shares of Microstrategy jumped 2.51% to $336.21 at close on Monday. The stock price has almost doubled since the beginning of November, rising from $184 as the price of bitcoin climbed higher. Over the past 52 weeks, the shares have reached a high of $358 and a low of $90.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 20,100.29.

The projected lower bound is: 16,580.63.

The projected closing price is: 18,340.46.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 white candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 29.1017. This is not an overbought or oversold reading. The last signal was a sell 16 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 53.11. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 13 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 13 period(s) ago.

Rex Takasugi – TD Profile

FOREX BTC= closed down -550.852 at 18,214.199. Volume was 78% below average (consolidating) and Bollinger Bands were 4% wider than normal.

Open         High         Low           Close        Volume
18,765.061   18,856.840   18,010.010    18,214.199   129,800
Technical Outlook
Short Term:        Neutral
Intermediate Term: Bullish
Long Term:         Bullish
Moving Averages: 10-period     50-period      200-period
Close:           19,006.45     16,286.91      11,855.58
Volatility:      84            67             50
Volume:          771,583       696,598        619,601

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FOREX BTC= is currently 53.6% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods.

Our volume indicators reflect volume flowing into and out of BTC= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on BTC= and have had this outlook for the last 73 periods.

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