Microstrategy Bought 301 BTC at an Average Price of $19,851 in the Bear Market
MicroStrategy purchased 301 Bitcoins (BTC) for roughly $6 million between August 2 and September 19, according to the firm’s filings. The latest purchase takes MicroStrategy’s total BTC holdings to nearly 130,000 bitcoins, with a total purchase price of $3.98 billion.
MicroStrategy Buys 301 BTC at an Average Price of $19.8K
Business intelligence firm MicroStrategy poured $6 million into Bitcoin, the company’s filings with the U.S. Securities and Exchange Commission (SEC) show. The firm bought 301 BTC, bringing its total holdings of the world’s biggest cryptocurrency to almost 130,000 BTC.
The latest purchase comes at an average price of around $19,851 per bitcoin, including fees and expenses. Overall, MicroStrategy, a long-time proponent of Bitcoin, invested a total of $3.98 billion into the cryptocurrency so far, with an average buy price of $30,639.
But the firm’s new $6 million investment in Bitcoin shouldn’t come as a surprise as the company revealed last week in a separate filing with the SEC that it intends to offload $500 million worth of stocks and use the proceeds to buy more Bitcoin. The reports drove MicroStrategy’s shares up around 11%.
MicroStrategy’s first investment in Bitcoin dates back to August 2020, when the firm injected $250 million in the cryptocurrency as a treasury reserve asset, citing losses from cash and a weak dollar. The firm continued making large-scale investments into BTC and as of May 2022, the firm held spent roughly $3.965 billion buying Bitcoin. The company almost faced a margin call when BTC fell below $21,000.
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MicroStrategy’s Bet on Bitcoin Comes Amid Another Crypto Downfall Ahead of Fed Meeting
Last month, MicroStrategy’s co-founder Michael Saylor stepped down from his CEO role at the firm to take another duty as the company’s Executive Chairman. Just a day after he exited the top role, Saylor tweeted he plans to “focus more on Bitcoin” in the future.
MicroStrategy’s latest bet on Bitcoin comes just a day after crypto assets tanked sharply as the markets brace for another major interest rate hike by the Federal Reserve on Wednesday. Bitcoin and Ether lost more than 50% in the past six months as a result of a steep crypto market sell-off due to inflation and a challenging macroeconomic environment.
The U.S. inflation in August came higher than expected, increasing the chances for another 75 basis points interest rate hike by the Fed on Wednesday, following two in June and July. According to the Consumer Price Index (CPI) data, annual inflation in August stood at 8.3%, higher than the consensus estimates of 8.0%.
Do you think MicroStrategy’s strategy to buy BTC amid a bear market will pay off in the future? Let us know in the comments.