Bitcoin Price Breaks $50,000 Barrier on MicroStrategy's Plan to Buy More BTC  

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Not long after Elon Musk’s Tesla invested $1.5 billion into Bitcoin, the cryptocurrency has notched up yet another record price.


Bitcoin’s price has broken the $50,000 barrier, reaching as high as $50,560, on the news that MicroStrategy will sell $600 million of convertible senior notes to buy more Bitcoin.

The business intelligence firm said today that it intends to sell these notes to institutional investors. The firm intends to use the net proceeds from the sale to acquire more Bitcoin. That would be in addition to the 71,079 BTC it already owns—at a current value of $3.5 billion.

The firm added that it will allow investors the option to purchase an additional $90 million of notes, which the firm will also use to buy more Bitcoin.

Since reaching $42,000 in early January, Bitcoin hovered between $30,000 and $40,000 for weeks, prompting commentators to ponder whether Bitcoin had the momentum to climb any higher. But on February 8, 2021, Tesla announced that it invested $1.5 billion into Bitcoin, providing momentum to the cryptocurrency, which is breaking records once again.

"The latest price rally was largely initiated by Tesla getting into Bitcoin. Many industry insiders saw that expansion coming: over the past few months, Elon Musk started to talk about Bitcoin more often on his social media, and in a more positive light,” BitRiver CEO and founder Igor Runets told Decrypt.

Since Tesla’s $1.5 billion investment in Bitcoin, the cryptocurrency’s price has increased from $38,900 to $50,000, representing a 30% increase.

“The recent rally is proof that the corporate and institutional world are confident enough to make significant capital allocations towards Bitcoin, positioning it as a new vertical of investable assets,” Miha Grčar, head of business development at crypto exchange Kraken, told Decrypt.

But Musk’s influence on Bitcoin’s price didn’t start when Tesla announced its purchase. In fact, Musk has been pumping the price of Bitcoin since last month.