Bitcoin surpassed $70,000 for the first time when markets opened at 9:30 a.m. ET on March 8. The new high was $70,170, breaking last week’s record of just over $69,000.
The token briefly crossed the $70,000 level, but was sold off throughout the morning. At the time of writing, prices hover between $68,000 and $69,000.
This new high marks a sharp rise since the beginning of this week. After reaching a high on March 5th, the token sold off heavily and fell to $59,000. However, just a few days after setting a new high and selling off nearly $10,000, Bitcoin recovered and set another new high.
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It appears that the decline in Bitcoin prices was not due to a lack of investor confidence, as Bitcoin prices soared rapidly. Instead, analysts are focusing on other factors that caused the price drop earlier this week. Anthony Scaramucci, founder of SkyBridge Capital, pointed out that the Grayscale Bitcoin Trust (GBTC) is experiencing heavy outflows due to arbitrage and high fees. Additionally, Bitcoins mined in 2010 were sold in large wallets. Both of these may have contributed to the price decline.
In any case, Bitcoin is back to new highs and not many people have lost faith in the token. Michael Saylor and his company MicroStrategy have been buying Bitcoin for the past few months. The company recently sold $700 million worth of convertible debt and is using the proceeds to buy more Bitcoin.
The notes are convertible at a price of nearly $1,500 per share, representing a 42.5% premium to the closing price on the announcement date. The bond’s coupon rate is also 0.625%.
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MicroStrategy has been acquiring Bitcoin since 2020 and has amassed approximately 200,000 tokens that are currently worth more than $13.5 billion. The most recent purchase in February was 3,000 Bitcoins for $155.4 million.
Although the company is the largest corporate holder of Bitcoin, it does not expect its Bitcoin purchases to end anytime soon. When asked about a potential exit strategy for the huge position, Saylor said, “The exit strategy is Bitcoin.”
Purchasing assets using debt is risky, so Saylor and his team must be extremely bullish and confident in Bitcoin’s future.
Bitcoin community sentiment remains largely bullish as MicroStrategy continues to buy and Bitcoin reaches new heights.
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This article Bitcoin is worth over $70,000. MicroStrategy takes on $700 million in debt to keep buying originally appeared Benzinga.com
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