Microstrategy bought on Monday 13,005 Bitcoins worth about $489 million at an average price of $37,617 per coin.
Now the business owns a total of 105,085 BTC that they bought for $2.74 billion. The average price per coin comes out to be $26,080.
Microstrategy’s CEO Makes Bitcoin Acquisition Second Business
Microstrategy’s primary business is software development. Michael Saylor, the CEO of the company, has added Bitcoin acquisition as a second mandate.
BTC is down 8% to about $33k today as a result of China’s continued crackdowns on mining hubs. As Microstrategy’s stock is tied to BTC, it too fell over 6%.
As of right now, 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 debt offerings so that the firm could pick up more coins, and they seem to have doubled down even more on their Bitcoin pursuits after the $489 million buy today.
Regarding their BTC business, Saylor says:
The software developer has also decided to sell more stock worth $1 billion so that they can fund more Bitcoin purchases
All these purchases have been a big benefit for the company as the year-on-year revenue jumped to 10%. Saylor says:
That has increased the power of the brand by a factor of 100. We just had our best software quarter … in the last 10 years last quarter
Related Reading | MicroStrategy Receives Over $1.5B In Orders For $500M Notes To Fund Bitcoin Purchases
Microstrategy has also seen the benefit in terms of stock value. In August last year, when they first started buying BTC, their stock price was around $120. Today, it is $580, a sharp increase of over 400%.
The bitcoin business is driving shareholder returns. I think the employees are happy. The shareholders are happy.
BTC is down to $32,195 today. This value is 19% down compared to last week. While over the entire month, its down slightly less, around 15%.
Here is a chart that showcases the current trend:
BTC shows a downward trend, again | Source: BTCUSD on TradingView
It looks like the market is bearish right now, and it’s unclear when it would change for the better.
China’s crackdowns on crypto seem to be having a major effect on the price of BTC so the future of the market probably depends on that as well. Right now, China doesn’t seem to be slowing down.
Related Reading | Bitcoin Mining In China To Usher Historic Moment, Will BTC Be Affected?
Some experts believe the market could correct itself to 1/2 of the value at $17k, and only after that a bullish pattern will make a return.