Bitcoin 'whale' MicroStrategy announced a plan to issue additional shares, which will allow the company to purchase more Bitcoin.

After the news broke, the digital asset approached $100,000 per coin during the morning session on December 26. A broader cryptocurrency index covering smaller tokens (including Ethereum, Solana, and the popular meme coin Dogecoin) rose by 0.2%, recovering from losses on Wednesday.

Sean McCarthy, trading director at liquidity provider Arbelos Markets, stated after the announcement of MicroStrategy's share issuance plan: "The news that MicroStrategy will issue additional shares next year to purchase more Bitcoin is driving up prices; the market is forward-looking regarding MicroStrategy's Bitcoin purchases, which is the most important reason for the market's rise. Following news about MicroStrategy has become an important part of my daily work."

However, as of the afternoon of December 26, Bitcoin experienced a significant drop, falling more than 3%. According to a document submitted to the U.S. Securities and Exchange Commission on December 23, MicroStrategy is seeking permission to increase the authorized shares of its Class A common stock and preferred stock. This will provide more financial support for the company, which has transformed from a software manufacturer to a Bitcoin accumulator.

Earlier this week, MicroStrategy announced that it had purchased an additional $561 million worth of digital tokens at an average price close to last week's all-time high. This marks the company's seventh consecutive week of purchases.

So far this year, Bitcoin has risen nearly 130%, outpacing the returns of traditional investments such as global stocks and gold.

Some traders warn that due to a large number of expiring open contracts for Bitcoin and Ethereum derivatives, the market may become volatile in the coming days.

On Friday, a record $43 billion in open contracts will expire on the derivatives exchange Deribit, including $13.95 billion in Bitcoin options and $3.77 billion in Ethereum options.

McCarthy said, "Market makers may unwind their hedges and sell Bitcoin put options, which could lead to significant volatility in the market on Friday."