Amid the cryptocurrency asset frenzy, Bitcoin ETF options are set to be listed, providing new ways to trade, hedge, and speculate on Bitcoin. Meanwhile, investors continue to increase their stakes, with the largest Bitcoin proxy in the U.S. stock market, MicroStrategy, continuing to issue bonds to buy Bitcoin.
On Monday, the Nasdaq Stock Exchange announced that options for the BlackRock iShares Bitcoin Trust ETF (IBIT) will be listed on Tuesday.
Alison Hennessy, head of Nasdaq ETP listings, told the media that Nasdaq and BlackRock have worked with regulators for over 10 months to make this possible, stating:
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“Listing IBIT options on the market is very exciting for investors, as this is exactly what we have heard from them.”
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After Trump's victory, Bitcoin surged, breaking the $90,000 mark, with prices rising about 30% since November 5.
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During this period, Bitcoin ETFs have also been attracting massive capital. IBIT is currently the largest Bitcoin spot ETF, having accumulated over $30 billion in assets since its launch in January, surpassing even the BlackRock iShares Gold Trust ETF (IAU).
Investors are ramping up their investments, and MicroStrategy, the largest &#34;Bitcoin proxy&#34; in the U.S. stock market, is no exception.
On Monday, MicroStrategy publicly announced that the company plans to issue $1.75 billion in 0% convertible senior notes. MicroStrategy also expects to grant initial purchasers the option to buy up to an additional $250 million in notes within three days of the initial issuance.
MicroStrategy stated in its announcement that it “intends to use the net proceeds from this offering to purchase more Bitcoin and for general corporate purposes.”
0% convertible senior notes mean that it does not need to pay regular interest to bondholders. These convertible bonds are sold at a discount and will mature at face value if not converted before the maturity date.
If MicroStrategy uses the entire $1.75 billion to purchase Bitcoin, it could buy an additional 19,065 Bitcoins at the current price.
On Monday, MicroStrategy purchased $4.6 billion worth of Bitcoin. Data shows that the company currently holds 331,200 Bitcoins, valued at over $30.3 billion, making it the publicly traded company with the largest Bitcoin holdings.
At the end of last month, MicroStrategy announced a “21/21 plan”, which aims to raise $42 billion over the next three years through $21 billion in equity and $21 billion in bonds to purchase more Bitcoin
Through buying coins, MicroStrategy's stock price is deeply tied to Bitcoin, with an increase of 460% year-to-date.
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MSTR

IBIT options will debut on Nasdaq on Tuesday, providing new ways to trade, hedge, and speculate on Bitcoin. Meanwhile, investors are increasing their stakes, as MicroStrategy will issue $1.75 billion in zero-coupon convertible debt to buy coins

- The launch of Bitcoin ETF options, specifically the iShares Bitcoin Trust (IBIT), on Nasdaq provides new avenues for trading, hedging, and speculating on Bitcoin.  
- MicroStrategy plans to issue $1.75 billion in convertible senior notes to fund additional Bitcoin purchases, aiming to acquire up to 19,065 more Bitcoins at current prices.  
- The company's stock is closely tied to Bitcoin's performance, having surged 460% year-to-date as it holds over 331,200 Bitcoins valued at more than $30.3 billion.

Bitcoin ETF options trading in the US stock market began on Tuesday, and MSTR continues to issue bonds to buy coins