02.03.2024

Large investors look positively at the «healthy» correction of bitcoin

Analysts at the CrossTower crypto trading platform said that the interest of large investors in the first cryptocurrency will continue to keep the asset price above $ 50,000.

According to the latest report, the number of Bitcoin wallets with balances over 1,000 BTC has increased significantly in recent weeks. CrossTower strategist Martin Gaspard is confident that this confirms the willingness of investors to buy the first cryptocurrency, despite the high price.

“Many institutions enter the industry with plans to buy and hold bitcoin, viewing it as digital gold. In the January fall in prices, investors saw an opportunity to buy an asset, ”the expert added.

On February 21, the price of the first cryptocurrency reached $ 58,000. On February 23, the bitcoin rate touched the $ 45,000 mark. At the time of writing, the asset is trading at $ 50,400. The market capitalization of digital gold is $ 942 billion, according to CoinGecko.

The head of ARK Invest looks positively at the correction of bitcoin

ARK Investment Management CEO Catherine Wood said in an interview with Bloomberg TV that she was «very happy» to see a «healthy» correction in Bitcoin. According to her, the company continues to have a positive attitude towards the main digital coin, despite the market situation, writes RBC Crypto.

There is no market that always shows only growth, Wood emphasized. The head of ARK Invest believes that bitcoin can be used in many areas, but now the coin is best suited for hedging risks, for example, inflation. In this regard, Bitcoin is significantly superior to gold, Wood said. Another advantage of bitcoin, she said, is that it can be used to protect against asset forfeiture .

Earlier in an interview with Yahoo Finance, Catherine Wood said that she was not surprised by the interest of institutional investors in the main digital coin. She argues that buying bitcoin by large investors is a matter of time, as the coin now has the lowest correlation of any other asset class.

MicroStrategy bought BTC for another $ 1 billion

MicroStrategy announced that it has acquired an additional 19,452 BTC for approximately $ 1.026 billion, including fees and costs.

The average purchase price was approximately $ 52,765 per coin.

On February 19, 2020, the company closed a previously announced round of sale of $ 1.05 billion convertible senior bonds with zero interest rate and maturity in 2027. MicroStrategy expected that the net proceeds from the placement of securities would be about $ 1.03 billion. All the funds raised were planned to be invested in the first cryptocurrency.

At that time, MicroStrategy owned 71,079 BTC. A business analytics software firm became the first public company to convert some of its free capital into bitcoin. In August, MicroStrategy bought 21,454 BTC for approximately $ 250 million.

In September, the company acquired another 16,796 BTC for $ 175 million. In December, it added 2,574 BTC to its balance sheet, which cost it $ 50 million.

In the same month, MicroStrategy raised $ 650 million in debt financing to invest in Bitcoin through a convertible senior bond offering. The amount turned out to be $ 100 million higher than the target of the placement.

“The company currently holds over 90,000 BTC, which confirms our belief that bitcoin, as the world’s most widely used cryptocurrency, can serve as a reliable store of value. We will continue to adhere to our strategy of acquiring bitcoins using surplus funds ” , – commented on today’s news the CEO of the company Michael Sailor.

He added that, depending on market conditions, the firm may continue to issue debt or equity securities to raise capital to buy additional bitcoins.

In January, Sailor announced that the company would consider new opportunities to invest in the first cryptocurrency.

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