Saylor's MicroStrategy claims it purchased the dip by purchasing 301 bitcoins for $6 million between August 2 and September 19. The total holdings are now at 130,000 BTC.
MicroStrategy acquired a new batch of bitcoin in spite of the market turmoil.
According to a U.S. Securities and Exchange Commission filing, the software company owned by Bitcoin bull Michael Saylor purchased 301 BTC for $6 million.
This latest acquisition is part of a long line of over-two year-old acquisitions. MicroStrategy bought bitcoin from the very beginning, bringing it to its new highs of 2021. However, the price plummeted sharply in 2018. The firm has not been discouraged by the market crash, as it bought more than 5,000 bitcoin in the first nine months of 2022.
Saylor, who was a well-known figure in the Bitcoin community for his 2020 BTC accumulation strategy, has since retired as its CEO. The MIT graduate now holds the position of Executive Chairman, which he claims allows him to concentrate more on Bitcoin-related aspects. Many publications believed that this was due to the bitcoin price drop and a consequent unrealized loss of MicroStrategy's holdings. However, Saylor claims that it was not.
MicroStrategy has increased its bitcoin holdings by 130,000 with the latest allocation. This is a significant increase from previous purchases. The coins that Saylor's company HODLed were purchased for almost $4 billion. They now have a value of $2.47 billion. This is a loss of more than $1.5 billion. However, the executives have claimed that the company's long-term investment goals are being hampered by the short-term depreciation.
The Terra ecosystem collapse, which lowered the value of peer-to-peer bitcoin to below its 2017 highs, has caused Bitcoin prices to remain flat all summer. Although the currency quickly regained $20,000, it has been difficult to maintain that level. At press time, Bitcoin was trading at $19,100
As investors await Wednesday's Federal Open Markets Committee meeting results, it is difficult to predict the future of Bitcoin's price. Markets expect the committee to announce a significant increase in U.S. interest rate following the August consumer prices index (CPI), print that was above expectations. Although bitcoin is an alternative to central banking, institutional investors who have accumulated BTC since 2020 weigh investment decisions and allocations based upon the global loosening or tightening economies.
Title: MicroStrategy Buys $6 Million In Bitcoin Amid Market Rout
Sourced From: bitcoinmagazine.com/business/microstrategy-buys-6-million-in-bitcoin
Published Date: Tue, 20 Sep 2022 13:14:16 GMT