On December 26, Financial Network reported (Editor: Ma Lan) that software service provider MicroStrategy is becoming an increasingly critical player in the Bitcoin market, currently holding Bitcoin worth approximately 43 billion USD, accounting for about 2.2% of the total Bitcoin supply.

In the document submitted to the USA Securities and Exchange Commission on Monday, MicroStrategy hopes to increase the number of authorized shares of Class A common stock and preferred stock to raise more funds for purchasing Bitcoin.

This also boosted the price of Bitcoin, which rose on Thursday. As of the time of publication, the price of Bitcoin has rebounded to 98,046 USD, an increase of 0.15% during the day. Other smaller tokens also saw a rebound, with the CMC100 Index, which measures a wide range of Cryptos, rising 3% since the beginning of the week.

Sean McNulty, Trading Director at liquidity provider Arbelos Markets, stated that MicroStrategy's announcement to issue more Stocks next year to purchase Bitcoin has driven up the price of Bitcoin. Market optimism regarding MicroStrategy's Bitcoin purchases is the main reason for the market rise.

Volatility Outlook

Earlier this week, MicroStrategy announced that it has purchased an additional Bitcoin worth 0.561 billion USD at an average price close to last week's historical highs, marking the company's seventh consecutive week of purchasing this token.

Since the beginning of the year, the price of Bitcoin has risen by 135%, surpassing the returns of most Global Stocks and traditional investments like Gold. This has also significantly boosted MicroStrategy's stock price, which has risen over 420% so far this year.

The company's latest plan is to raise 42 billion dollars to continue accumulating Bitcoin, with 21 billion dollars coming from Stock issuance and the other 21 billion dollars from fixed-income securities, thus this plan is referred to as the "21/21 Plan" by the company.

The goal of this plan is quite clear, which is to maximize the Bitcoin Holdings using all possible financial leverage, thereby ensuring its pioneering position in the field of Bitcoin. However, this ambitious idea has also led some critics to believe that it may trigger concerns among traditional investors, as the scale and speed of dilution of equity are clearly not mainstream in the market.

Additionally, some Traders warn that the market might experience significant fluctuations on a certain day due to a large number of open contracts for Bitcoin and Ethereum derivatives nearing expiration.

Some believe that Friday might be that Schrödinger's time, when the open contracts of the derivatives Exchange Deribit will reach a record 43 billion dollars, including 13.95 billion dollars of Bitcoin Options and 3.77 billion dollars of Ethereum Options. Analysts are concerned that market makers may unwind their hedges and short Bitcoin on Friday, potentially triggering significant volatility.