MicroStrategy, a business intelligence firm has acquired approximately 314 BTC, following a retrace over the last couple of days. On Thursday, the price of Bitcoin dropped to near $31k because of a misunderstanding of newbies in the sector. Michael Saylor, the CEO of MicroStrategy, following the dip, took the chance of becoming the week’s big buyer of the flagship crypto token. The firm then acquired $10 million worth of Bitcoins at an average price of near $31,808 each BTC. Saylor also revealed that after adding 314 more Bitcoins in MicroStrategy’s balance sheet, the firm is now holding more than 70,784 BTC.
The entire purchase of Bitcoin is made in cash
Following the FORM 8-K of the purchase announcement, it is observed that the total Bitcoin fund is purchased via cash. MicroStrategy has purchased the total fund following its Treasury Reserve Policy, at an average price of $31,808, inclusive fees and expenses. After the purchase, the firm is currently holding an approximate amount of 70,748 BTC, which is acquired at an aggregate price of $1.135 billion, including fees and expenses.
MicroStrategy as the leading institution to acquire BTC
In August 2020, MicroStaretegy was the first institutional investor to acquire $250 million worth of Bitcoins. The business intelligence firm’s move also triggered several other institutions to adopt the leading crypto token to their balance sheet. Since the first time MicroStrategy added BTC to its balance sheet, the firm’s stock price surged by more than 320%. Not only the price of the shares surged, but the leading token also rallied to create ATH, as many financial and insurance institutions began to adopt the token.
The confirmation of the BTC purchase defy the sell-off
In the last couple of days, the price of Bitcoin was drowning. On Thursday, the leading crypto token price went below the price level of $30,000 for the first time since earlier this month. On Friday, the price showed a more vital trading day after having a visit from below $30k.
Meanwhile, MicroStrategy confirmed the token purchase, which joined Grayscale’s ongoing purchases that defy overfall sell-off pressure in recent weeks. Still, the interest of Bitcoin whales remained focused below the price level of $30,000. According to a tweet from Whalemap, the area below the mark of $30k is crucial to hold to avert a further price drop.
