The crypto market remains bullish no matter what: at least this is the opinion of Michael Saylor, CEO of MicroStrategy. Yesterday he announced another completed round of investments in Bitcoin.
This time, MicroStrategy bought another 5050 BTC for $ 242.9 million at an average price of $ 48,099 per coin. The company began to actively invest in BTC since August last year, and today it has already become the largest professional investor in BTC. Let’s talk about the situation in more detail.
Note that not all representatives of MicroStrategy are happy with its investment strategy and tight connection with cryptocurrencies. As it became known last week, in August 2021, the shares of the company were sold by the CFO of MicroStrategy Fong Le and CTO Timothy Lang. Most interestingly, the deals were not previously agreed upon. In this regard, experts admitted that such a step was precisely the answer to the decision of the company’s management, which prefers to issue debt obligations in order to acquire an additional volume of cryptocurrency.
At the same time, MicroStrategy is already the largest holder of BTC among professional investors, outperforming its closest competitor in terms of savings by more than two times.
Top Bitcoin Investors Among Large Companies
Please note that MicroStrategy has more than half of the total supply of bitcoins in circulation at its disposal. This is a huge achievement for one company.
Who buys Bitcoin
On a Form 8-K filed with the US Securities and Exchange Commission (SEC), MicroStrategy noted the purchase of 8,957 BTC in the third quarter of 2021. According to Cointelegraph, prior to this, the previous round of investments was the purchase of 3907 BTC for $ 177 million between July 1 and August 23.
The company now has 114,042 BTC on its balance sheet with an average purchase of $ 3.16 billion. At the current market price of the cryptocurrency, MicroStrategy can sell its coins for about $ 5.2 billion. According to the 8-K form, the average purchase price for all of the company’s bitcoins hovers around $ 27,713, which means that all MicroStrategy’s investment rounds still made a big plus to the firm’s unrealized profits.
It is important to note that the average price of the last purchase was $ 48,000. This means that the company acquired BTC, including before the market crash last Tuesday, when Bitcoin fell by 10 thousand dollars in a few hours. In this regard, MicroStrategy has cemented its reputation among the cryptocurrency community. Recall that recently, the company has often acquired large batches of bitcoins on the eve of a serious market crash. In this regard, the crypto community jokingly calls such messages from Sailor «signals to sell.»
Bitcoin four-hour chart
As it became known earlier, Sailor is definitely not going to sell cryptocurrency in the near future – earlier he has repeatedly stated that he is ready to keep bitcoins on the balance for at least whole decades.
MicroStrategy CEO Michael Saylor
The largest American cryptocurrency exchange Coinbase also plans to significantly increase its balance. On Monday, its representatives announced a $ 1.5 billion debt issue. As a reminder, back in April of this year, Coinbase went public to attract additional funding and become more influential in the eyes of financial regulators.
The new investment is aimed at offering the company’s $ 1.5 billion senior bonds maturing in 2028 and 2031. The process is fully guaranteed by Coinbase Inc, a wholly owned subsidiary of Coinbase that acts as its holding company. The interest rate, repayment terms and other conditions for raising funds are still being discussed with large investors.
It is likely that most of these raised funds will be spent on infrastructure development in the industry or direct investments in cryptocurrencies themselves. This is clearly a positive development for the cryptosphere as a whole and suggests that large companies have big plans to increase the value of digital assets. This means that the bullish growth cycle in the market may be much longer than it was before.
We believe MicroStrategy has already earned a place in history books. Nevertheless, the management of the company is seriously risking such investments, getting into debt and thereby increasing its dependence on the Bitcoin exchange rate. However, this does not stop anyone. Moreover, Michael Sailor clearly has no plans to pause his acquisitions. This means we are waiting for further large purchases and an additional positive background in the market.