Bitcoin rose on Thursday following an announcement by MicroStrategy, a major stockpiler of the digital asset, revealing plans to issue more shares. This move would provide the company with the opportunity to purchase additional Bitcoin, further boosting the cryptocurrency's value.

As of 11.30 am in Singapore, Bitcoin was up 0.32%, trading at US$98,747, after reaching an intraday high of US$99,876.70. A broader gauge of cryptocurrencies, which includes smaller tokens such as Ether, Solana, and the meme-coin Dogecoin, also saw a 0.2% increase, recovering from losses on Wednesday.

Sean McNulty, director of trading at liquidity provider Arbelos Markets, attributed the rise in Bitcoin's price to the announcement. "The market is being forward-looking about MicroStrategy's Bitcoin buys, and that's been the single biggest reason for the market to go up. Watching MicroStrategy news is becoming a big part of my day," he said.

MicroStrategy's move to issue more shares comes as the company seeks approval to increase the number of authorized shares of its Class A common stock and preferred stock, according to a filing with the US Securities and Exchange Commission (SEC) on Dec 23. This would give the company, which has pivoted from being a software maker to a Bitcoin accumulator, greater leverage to acquire more of the digital token.

Earlier this week, MicroStrategy revealed it had purchased an additional US$561 million worth of Bitcoin, buying at an average price near the record highs seen last week. This marked the seventh consecutive week of Bitcoin purchases by the company.

Bitcoin has risen 135% this year, significantly outperforming traditional investments like global stocks and gold. However, some traders have warned of potential volatility in the coming days due to massive expiries of open interest in Bitcoin and Ether derivatives.

On Friday, a record US$43 billion in open interest, including US$13.95 billion in Bitcoin options and US$3.77 billion in Ether options, is set to expire on the derivatives exchange Deribit.

"Market makers could unwind their hedges and short Bitcoin strikes, which might make it a choppy market on Friday," McNulty added.

Bloomberg