MicroStrategy Continues Buying the Bitcoin Dip, Adds Another 1900 BTC to Its holdings
MicroStrategy (Nasdaq: MSTR), the data analytics firm that's taken to stockpiling bitcoin, has bought 1,914 bitcoins for approximately $94.2 million in cash.
The CEO Michael Saylor has made bitcoin acquisition a second mandate for his business-intelligence software company. It is well known for its bullish crypto bets. According to a regulatory filing between "Dec. 9, 2021, and Dec. 29, 2021, the Company purchased approximately 1,914 bitcoins for approximately $94.2 million in cash, at an average price of approximately $49,229 per bitcoin, inclusive of fees and expenses." Moreover, The firm currently sits on an accumulation of "124,391 bitcoins that were acquired at an aggregate purchase price of $3.75 billion and an average purchase price of approximately $30,159 per bitcoin, inclusive of fees and expenses."
MicroStrategy's approach to buying BTC is to raise cash via debt offerings and use the returns to buy the digital asset. Due to this approach, hardly any investors care about MicroStrategy's main business and a significant majority is focused on the company's BTC holdings. In the third quarter, the business added nearly 9,000 bitcoin to its holdings, an average of 3,000 a month. MSTR shares are rising, climbing to $562.34. It has earned 44.73% this year.
The enormous investment comes after a recent 17% price decline of bitcoin due to an almost 10% selloff, marked as the worst monthly performance since May. At the time of writing, Bitcoin is trading at $48,086.21 apiece, and despite its recent decline, it is up more than 60% this year with a 1.97% bullish growth in the last 24 hours.
Anyhow, it looks like the recent purchases from the pro-bitcoin firm did not fuel sufficient support to the digital asset as it has still managed to settle below the $50,000 border.
CEO Michael Saylor himself owns about 17,732 BTC and believes the cryptocurrency's price is only about to rise in the future. He considers the "buy bitcoin, dump gold" approach as the idealist approach compared to the dead rock. In the previous month, he tweeted, "Digital gold is going to replace gold this decade. I have said it before; bitcoin is going up forever." and also stated he would continue to put his company's funds where he proclaims.