Home News MicroStrategy buys the dip, acquires $10M in Bitcoin

MicroStrategy buys the dip, acquires $10M in Bitcoin


MicroStrategy acquired 229 Bitcoins worth $ 10 million at an average cost of $ 43.6 thousand. The regulator represented by the SEC was also notified of the purchase. The company has a policy of regularly buying Bitcoin. For its Treasury reserves in order to hedge against US dollar inflation.

Now, 92 thousand Bitcoins are under the control of MicroStrategy, on the purchase of which $ 2.2 billion was spent. The average price of one purchased bitcoin is $ 24.4 thousand.

In fact, the company has almost doubled its invested money since the start of cryptocurrency investments. MicroStrategy’s reserves are currently valued at $ 4.15 billion.

MicroStrategy has a paper profit of $ 1.8 billion from investments in Bitcoin. The software maker is the largest holder of cryptocurrency among public companies, according to Bitcoin Treasuries. Tesla is on the second line, which owns 43.2 thousand Bitcoins for a total of $ 1.9 billion.

For years, people have wondered when the traditional financial sector will give up and start hoarding Bitcoin. And it looks like that time has finally come. When companies like Tesla and MicroStrategy get into cryptocurrency, it’s clear that blockchain technology is going mainstream.

MicroStrategy has a clear advantage over its traditional counterparts in the financial industry with its aggressive early steps.

In August 2020, MicroStrategy invested $ 250 million in Bitcoin. Later, the firm’s board of directors approved a policy of increasing investment in the first cryptocurrency at the expense of cash reserves.

MicroStrategy last bought cryptocurrency on May 13th. Then the company bought 271 Bitcoins worth $ 15 million at an average cost of $ 55.3 thousand.

On May 17, the cost of Bitcoin fell to a local minimum since the beginning of February of $ 42 thousand amid rumors about the sale of cryptocurrency by Tesla.

Interest in Bitcoin from MicroStrategy is at its peak

Bitcoin continues to be the focus of institutional investors’ attention. Well-known entrepreneur and investor Mike Novogratz believes that in the foreseeable future (4-6 weeks) Bitcoin will continue to consolidate at levels between $ 40,000 and $ 55,000, in order to make a big price jump again. Novogratz, who heads Galaxy Digital, said his organization took advantage of the drop in Bitcoin’s price to $ 42,000 and made additional investments in the digital asset.

Novogratz believes that for Ethereum, the moment of consolidation is also coming, in the range from 3 to 4 thousand dollars, after which digital asset No. 2 can again noticeably grow in price. The entrepreneur stressed that he invests not only in Bitcoin. He works “on a wide range of assets” related to cryptocurrencies. So, his Galaxy Digital previously announced the purchase of the cryptocurrency company BitGo.

The current situation in the cryptocurrency market signals a possible increase in the volume of Bitcoin sales: the analytical company Glassnode discovered that there is an influx of bitcoins to almost all crypto exchanges. At the same time, some experts believe that this factor may “cool off” by itself, without causing a significant further decline in the price of Bitcoin.

Previous articleElon Musk impersonators make bank as crypto scammers’ profits surge
Next articleFamous analyst calls $43K Bitcoin price ‘logical’