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- MicroStrategy makes another purchase, adding $94.2 million worth of Bitcoins to its holdings.
- The company now holds about 124,391 Bitcoins, estimated at $3.75 of investments.
- The community is growing doubtful about the purchases and expresses their views on various social media platforms.
MicroStrategy is a software intelligence organization led by one of the biggest Bitcoin Bull, Michael Saylor, that made a $94 million investment in Bitcoin again. As mentioned by many, MicroStrategy has once again bought the dip. The investment added 1,914 Bitcoins to its massive holdings at an average price of about $42,229 for all BTCs. The software intelligence organizations have the largest corporate Bitcoin holdings other than exchange-traded funds (ETFs) and trusts.
Details From The Announcement
In a filing with U.S. SEC (Security Exchange Commission) on Thursday, MicroStrategy said they had purchased more than 2,000 Bitcoins from 9 December to 29 December at a price of over $94 million. Also, the CEO of MicroStrategy posted a tweet saying “MicroStrategy has purchased an additional 1,914 bitcoins for ~$94.2 million in cash at an average price of ~$49,229 per #bitcoin.”
The tweet also revealed that the total holdings now include $124,391 BTCs, and the most recent purchase brought the total worth of holding to $5.9 billion, adding over $2.1 billion of gains.
As per reports, this purchase of 1914 Bitcoins was funded entirely by MicroStrategy selling class A common stock in the same time frame. A total of 167,759 shares in an agreement of June open market sale on an average price of about $565.78 per share, were sold by the company.
The Purchase Strategy
MicroStrategy frequently makes such purchases, which has made its strategies clear to all. Every time the market goes down, the company makes a purchase, ensuring Bitcoin purchases at pretty low prices. Other significant purchases include one from 29 November when the organization bought Bitcoins worth $400 million, which estimated a total of about 7,000 new BTCs, and a second one was made after two weeks when it added about 1,434 BTCs to its holding worth $82 million.
Microstrategy made its first investment of $250 million in August 2020 and has continued ever since. Even though the majority of purchases were cases of buying the dip, a few buys included price uptrends of about $50,000 in early 2021.
The Community Disbelief
Initially, the purchase announcements made by MicroStrategy affected the prices of Bitcoin but are now settled. The frequent mass purchasing of Bitcoins has led users to disbelieve. It can be observed on various social media platforms where users expressed their thoughts by saying that whenever Microstrategy acquires some Bitcoins, the prices drop about 20 to 30%, which they believe means that Michael lies about the purchases and holdings are being sold instead. In contrast, some believe he lies and does not buy or sell.
For some reason, the community seems doubtful. The emotions and beliefs are a mix of positive and negative. And the fact that announcements of purchases are given by Michael Saylor, which somehow influences the market, and brings Bitcoin prices up or down, can’t be ignored.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
