Microstrategy bought 13,005 bitcoins valued at approximately $ 489 million on Monday at an average price of $ 37,617 per coin.
The company now owns a total of 105,085 BTC, which it bought for $ 2.74 billion. The average price per coin is $ 26,080.
Microstrategy CEO Makes Bitcoin Acquisition Second Deal
The main business of Microstrategy is software development. Michael Saylor, the company’s CEO, has added the Bitcoin acquisition as a second mandate.
BTC is down 8% today to about $ 33,000 as a result of China’s ongoing crackdown on mining hubs. Since Microstrategy’s stock is pegged to BTC, it too fell over 6%.
Currently, the 105,085 BTC that Microstrategy holds is worth more than $ 3 billion. The software company acquired them at an average price of $ 26,080 per coin, including fees and other expenses.
Microstrategy had to take on debt offers in order for the company to pick up more coins, and they appear to have doubled their Bitcoin aspirations even more after today’s $ 489 million purchase.
Regarding her BTC business, Saylor says:
We have rotated our shareholder base and turned into a company that can sell enterprise software and acquire and hold bitcoin, and we have successfully done so with leverage.
The software developer has also decided to sell more $ 1 billion worth of shares so they can fund more Bitcoin purchases
All of these purchases were a huge benefit to the company as sales increased 10% year over year. Saylor says:
That increased the brand’s power by a factor of 100. We just had our best software quarter … last quarter in the last 10 years
Related reading | MicroStrategy wins over $ 1.5 billion in orders for $ 500 million notes to fund Bitcoin purchases
Microstrategy has also seen the benefits in terms of stock value. Last August, when they first started buying BTC, their share price was around $ 120. Today it’s $ 580, a steep increase of over 400%.
The bitcoin business drives shareholder returns. I think the employees are happy. The shareholders are satisfied.
BTC fell to $ 32,195 today. This value has decreased by 19% compared to the previous week. It went down a little less throughout the month, around 15%.
Here is a graph showing the current trend:
BTC shows a downward trend, again | Source: BTCUSD on TradingView
It looks like the market is bearish right now and it is unclear when it would turn for the better.
China’s crackdown on crypto appears to have had a huge impact on the price of BTC, so the future of the market likely depends on it too. At the moment, China doesn’t seem to be slowing down.
Related reading | Will Bitcoin Mining Herald a Historic Moment in China, Will BTC Be Affected?
Some experts believe the market could correct itself to half the value at $ 17,000 and only after that a bullish pattern will generate a return.