MicroStrategy Discards Market Volatility, Buys Bitcoin on Price Dip
Cryptocurrency Enthusiast - Kenny
As revealed by CEO Michael Saylor, the company purchased another Bitcoin investment of 205 BTC at an estimated price of $48,888, spending $10 million in cash to do so. This places the cumulative Bitcoin held by the firm up to 91,064 BTC worth approximately $4.3 billion at the time. The overall cost for the purchase of Bitcoin by MicroStrategy stands at nearly $2.2 billion, with an average price to buy Bitcoin sitting at $24,119.
MicroStrategy's latest Bitcoin acquisition is one of several "symbolic" purchases where the company adds a couple more million in BTC for every dip. Although the tech giant started pouring money for Bitcoin investing in 2020, when Bitcoin trading was below $10,000, the latest acquisitions are yet to breakeven.
The most recent big acquisition, financed by a $900 million bond sale, was made at an estimated price of $52,700 per BTC. Bitcoin's price has fluctuated since then in the context of the weakening outlook for risk assets on Wall Street.
Wall Street friction seems to have some impact on Bitcoin, while MicroStrategy seems eager to move on its previous course. Thursday's buying is essentially symbolic, but the most significant measure is that MicroStrategy did not sell, considering the 50% plunge in stock prices after the February highs.