US publicly-traded firm MicroStrategy announced it completed a $1.05 billion debt offering to buy more Bitcoin (BTC). The software technology company has significantly increased the size of the convertible debt offering from $600 million to over $1 billion.
The company intends to use all of the proceeds to add more Bitcoin to its balance sheet. It seeks to hedge against a potential devaluation in the US dollar, according to CEO Michael Saylor.
Bitcoin continued gaining in recent days, rising to a fresh and extending a two-month rally. It rose to a record $58,640, taking its weekly gain to around 22%. It has surged around 106% this year. Additionally, Bitcoin’s market capitalization surged past $1 trillion on Friday.
As of the time of writing, it is trading at $56,904, up 0.4% in the last 24 hours. Its market cap reached $1.06 trillion, according to CoinGecko. The Block Research reported that Bitcoin’s market capitalization is now just over 10% that of gold.
MicroStrategy has been steadily purchasing Bitcoin since last August as part of its treasury management strategy. MicroStrategy’s current Bitcoin holdings reached over 71,000 BTC, which is worth about $4 billion at the current market price.
OKCoin Delists Bitcoin Cash, Bitcoin SV
On another note, with Bitcoin’s market cap exceeding $1 trillion, crypto exchange OKCoin announced the decision to delist Bitcoin Cash (BCH) and Bitcoin SV (BSV). The move, according to the firm, is to avoid ‘misleading’ new customers who joined OKCoin to buy Bitcoin.
CoinDesk reported that the exchange decided to scuttle the markets for Bitcoin Cash and Bitcoin SV because they created confusion for new Bitcoin customers. Another reason taken into consideration is the routine lawsuits and legal threats from Bitcoin SV creator Craig Wright.
Wright has filed copyright claims and sued against web portals that host the original Bitcoin white paper, such as Bitcoin.org.
Bitcoin Cash is a fork, or “clone” of Bitcoin, which split from the Bitcoin network in December 2017, with the aim of increasing the number of transactions that could be processed.
Two years later, in November of 2019, Craig Wright and others forked Bitcoin Cash to create Bitcoin SV, which had even larger blocks than its predecessor to reduce transaction fees.