Analytical giant MicroStrategy is not going to be distracted from the cryptocurrency market. The day before, the CEO of the company, Michael Sailor, announced the purchase of another 29,646 BTC for over $ 650 million.
This decision was implemented by the leadership of MicroStrategy against the backdrop of a noticeable dip in the price of Bitcoin this weekend. The company reportedly purchased the coins at an average price of $ 21,925 per bitcoin.
We checked the actual data: today, Bitcoin is trading at $ 22,679, which is 3.1 percent below the rate of a day ago. Note that at the same time, the cryptocurrency is still ahead of its own value a week ago by 17.7 percent. Accordingly, a full-fledged correction, which is a normal phenomenon after a sharp rise in an asset, has not yet occurred – at least on the scale in which it is usually expected.
Here is a chart of the Bitcoin price for the last month. The last thirty days have brought the first cryptocurrency investors a 21.3 percent growth in their BTC portfolio.
At the same time, the level of dominance of Bitcoin in the cryptocurrency market is 65.9 percent. Ethereum accounts for 10.7 percent of the total niche market cap. Here’s a chart of ETH for the last month.
MicroStrategy Investments in Bitcoin
Recall that in early December, the Wall Street analyst giant raised its stake on Bitcoin by about $ 400 million by selling its own convertible bonds. Prior to that, MicroStrategy made its first major investment in a major cryptocurrency at the end of the summer.
The company currently owns 70,470 BTC. The average purchase price of all coins is $ 15,964. These numbers make MicroStrategy the fifth largest individual Bitcoin holder, with the company even ahead of the US government, which has at least 69,420 BTC at its disposal, Cointelegraph reports.
70,470 bitcoins at today’s exchange rate are equivalent to $ 1.6 billion.
Note that most of the coins in the possession of the US government were confiscated after the arrest of Ross Ulbricht, the founder of the infamous Silk Road trading platform. Read more about this story – along with an explanation of the details of the activities of the site management and the course of their capture – in our separate material.
With the rise in the price of Bitcoin over the past months, MicroStrategy has already managed to make hundreds of millions of dollars on its investment. In addition, the company was one of the first to join a new trend – large investments in crypto by institutions.
Given the fact that such large companies usually hold coins for a long time, it is likely that Bitcoin’s explosive growth will continue in 2021. Nevertheless, the fewer those who want to sell their cryptocurrency savings, the fewer obstacles to further growth in rates.
The day before, the head of MicroStrategy Michael Sailor shared his investment experience with Elon Musk. He told the world’s most famous entrepreneur that over the past few months he bought BTC for $ 1.3 billion, so «large transactions in cryptocurrency» are absolutely possible. In addition, Sailor suggested that Elon convert Tesla’s balance sheet from dollars to Bitcoin.
We believe that such actions of the MicroStrategy management first of all prove the professionalism of the employees who activate the purchase of cryptocurrencies on the sinking of the rate, which allows you to buy a certain number of coins at a lower price and earn more in the future. In addition, the investment spurs on less experienced investors who have doubts about the prospects for Bitcoin.
However, buying hundreds of millions of dollars worth of BTC is an excellent argument in favor of the fact that the cryptocurrency will not collapse to zero and will continue to exist. So, you can contact her.
