Chain News Today TheBitTimes.com

MicroStrategy (NASDAQ:MSTR) was yesterday’s most-traded stock on US stock markets — and will post similarly spectacular numbers today. Opening for trading 13% higher than yesterday’s close, within an hour MicroStrategy had turned over 30 million shares of volume, dwarfing its full-day average of 19 million. The company owns 331,200 bitcoins worth over $32 billion and could be buying more during today’s session. As of mid-morning, its market capitalization was $103 billion — a 3.3 multiple on its bitcoin holdings. The company has announced financing to purchase tens of billions of dollars more. Behind these numbers is a massive, non-public market for privately negotiated share offerings and corporate debt. MicroStrategy’s acquisition of bitcoin is fueled by leverage. It has two primary instruments for raising capital: selling shares or bonds. Below is the context to understand the math behind these two instruments as they apply to MicroStrategy today. ...

Bitcoin price has flashed a few bullish signals, but traders are not too keen on adding leverage longs until after the Federal Reserve shows its cards on Feb. 1. Bitcoin (BTC) price had a mixed reaction on Jan. 25 after the United States reported a 2.9% gross domestic product growth in the fourth quarter, slightly better than expected. Still, the sum of all goods and services commercialized between October and December grew less than 3.2% from the previous quarter. Albeit somewhat optimistic, another data set limiting investors' confidence was news that the U.S. Federal Reserve (FED) would revert its contractive measures anytime soon as U.S. durable goods orders jumped 5.6% in December. The indicator came in much higher than anticipated, so it could potentially mean that Interest Rates could be increased for a little longer than expected. Oil prices are also still a focus for investors, with crude WTI approaching its highest level since mid-September, currently trading at $81.50. ...