MicroStrategy Incorporated (MSTR) shares are trading significantly higher on Monday following the recent halving event of Bitcoin (BTC), which has caused a rise in its price.
Bitcoin completed its fourth halving event last Friday, which is a process where the number of bitcoins produced by miners every 10 minutes is cut in half. This event has led to a 1.56% increase in the price of Bitcoin over the last 24 hours.
Microstrategy CEO Michael Saylor believes that the halving event will have a significant positive impact on the price of Bitcoin due to decreased selling pressure. He explained that the halving reduces the amount of Bitcoin that miners can sell, which in turn should drive up the price.
”You’re going to see $12 billion of natural selling per year converted into $6 billion of natural selling per year,”
Saylor said.Microstrategy is known for its heavy investment in Bitcoin, currently holding more than 214,000 bitcoins, which is equivalent to over 1% of the entire supply. The company’s average purchase price for these bitcoins is approximately $35,000. Notably, Microstrategy recently used a $700 million convertible bond offering in March to acquire more Bitcoin.
According to Benzinga Pro, Microstrategy shares have surged by 12% and were trading at $1,314.75 at the time of publication on Monday.
