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MicroStrategy will continue to buy Bitcoin despite market plummeting

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MicroStrategy Inc. plans to continue buying Bitcoin (BTC), despite its falling price and claims from regulators. Chief Financial Officer of the company Phong Le stated this, according to the Wall Street Journal (WSJ).

“Our strategy with Bitcoin has been to buy and hold, so to the extent we have excess cash flows or we find other ways to raise money, we continue to put it into Bitcoin,” CFO said.

Moreover, Le did not specify how many BTC the company plans to purchase this year. However, according to him, MicroStrategy is not going to sell its Bitcoin investments.

The first public company to invest part of its own capital in digital gold

MicroStrategy was the first public company to invest part of its own capital in digital gold. In August 2020, the analytical software provider purchased 21,454 BTC (~$250 million at the exchange rate at the time of the transaction). Since December 2020, the company has started using not only its own capital; but also debt financing to buy Bitcoin, placing convertible bonds in the amount of $650 million.

In February 2021, MicroStrategy issued a new tranche of more than $1 billion and again invested the funds raised in cryptocurrency. Throughout the year, the firm continued to invest in Bitcoin. The largest purchases were 13,005 BTC for $489 million in June; and 7002 BTC for $414.4 million at the end of November.

In early December, MicroStrategy announced the acquisition of 1,434 BTC worth about $82.4 million. According to the report, the average purchase price was approximately $57,477. Transactions took place between November 29 and December 8, 2021.

SEC’s comment to MicroStrategy

At the time of writing, the reserves of the American firm have 124,391 BTC ($4.64 billion at the current exchange rate).Oor 0.592% of the volume of digital gold issue.

The US Securities and Exchange Commission (SEC) made a comment to MicroStrategy regarding the display of the value of digital assets in financial statements. On Friday, January 21, MicroStrategy securities (MSTR) closed the trading session at $376. The drop for the day was 17.8%.

Recall that at the end of 2021, MicroStrategy acquired an additional 1914 BTC worth more than $94 million. The average purchase price was ~$49,229 said CEO of the firm Michael Saylor.

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