- Michael Saylor continues to back bitcoin as MicroStrategy purchases another $489 million worth of bitcoin.
- The company, which has been at the forefront of Bitcoin purchases, now holds a whopping 105,085 bitcoins.
- In other developments, MicroStrategy stock value plummeted after the purchase with investor faith being shaken by the crash in crypto prices.
- $489 million may save Bitcoin from hitting rock bottom as some experts are predicting a price correction to $18k.
Michael Saylor, CEO of MicroStrategy and Bitcoin enthusiast, is proving to the world that, even during a crash in cryptocurrency prices, his faith in Bitcoin won’t waver.
MicroStrategy has acquired another huge chunk of bitcoin, worth $489 million, bringing the total amount of bitcoin being held by the company to 105,085 bitcoins. As asset prices fell once again on Monday after the slight recovery of the previous week, MicroStrategy stocks also fell due to a lack of confidence from investors.
A $489 Million Purchase: MicroStrategy Isn’t Slowing Down
Cloud-based software service provider MicroStrategy is in the news again following another massive Bitcoin purchase. After this purchase, the company now holds over $3 billion worth of Bitcoin.
The company is gradually making holding bitcoin its second business as it currently holds 105,085 bitcoins. MicroStrategy is making a profit from the purchases as it buys its bitcoins at an average price of $26,080.
To finance this recent purchase, worth $489 million, the company had to sell debt worth $500 million. The bitcoins will be held under its subsidiary MacroStrategy.
MicroStrategy is taking heat for the new purchase as their stock value declined by 10% in the wake of China’s continued crackdown on crypto mining activities. At the time of the sale, the price of Bitcoin was trading at below $32000, making investors panic.
On the Flipside
- MicroStrategy’s newly purchased 13,005 Bitcoins at $37,617 has hit a sour note for the investment company.
- The shares of MicroStrategy are down by 10 percent as the price of bitcoin falls below $30k.
- As prices continue to dwindle, rapid development of solar crypto mines could change the tide of digital assets as China’s crackdown continues.
Michael Saylor and Bitcoin
Michael Saylor has been at the forefront of Bitcoin promotion alongside other noted businessmen. He strongly believes that Bitcoin is a store of value and has debated that Bitcoin is better than gold going forward.
Saylor was among the first CEOs to store a part of their company’s reserve in Bitcoin, and hold on to its coins through a shaky period for the market. His push for Bitcoin, alongside Elon Musk’s Tesla’s $1.5 billion purchase of bitcoin earlier this year, can be seen as a major reason for Bitcoin’s massive rally earlier this year.
The Future of Bitcoin
Bitcoin is currently on a bad run following China’s crackdown on mining activities due to environmental concerns.
Elon Musk’s tweet about Bitcoin’s energy usage also contributed to the asset’s woes as the crypto giant fell to below $40,000 and still hasn’t fully recovered. At the time of writing, Bitcoin is trading at $29,184 and may yet plunge even lower.
Though things are shaky at the moment, Bitcoin has shown that it can go on a positive run as it did early on in 2021.
The purchase of Bitcoin by MicroStrategy and the news about the quick development of solar crypto mines, backed by Jack Dorsey, will certainly push the coin a little. Furthermore, El Salvador’s decision to accept Bitcoin as legal tender is a huge win for cryptos.
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