One company that has shown unbreakable faith in Bitcoin is Microstrategy. The company has bought another $10 million worth of Bitcoin at an average price of $43,633 as the market dips. This time I won’t even give the count about the number of purchases made by Microstrategy. Every time we hear about a BTC dip, be it big or small, it is paired by Microstrategy’s buy news. Heck, once the company even said screw the dip and made a purchase at around $58k. Microstartegy was also one of the first big companies to start accumulating BTC from around August 2020. This is why they still have an insanely low average price.
Microstrategy and Bitcoin
The company is one of the largest Bitcoin holders with over 92,079 coins at an average price of $24,450. This makes their total investment worth around $2.251 billion that is still around 60% since the time of investment. And their latest Bitcoin purchase just adds to that number. The company’s CEO, Michael Saylor, announced that they have recently purchased an additional amount of 229 Bitcoin after the dip. He also shared a From 8-k filing to show the same.
MicroStrategy has purchased an additional 229 bitcoins for $10.0 million in cash at an average price of ~$43,663 per #bitcoin. As of 5/18/2021, we #hodl ~92,079 bitcoins acquired for ~$2.251 billion at an average price of ~24,450 per bitcoin. $MSTRhttps://t.co/fU6LN4WbKI
— Michael Saylor⚡️ (@saylor) May 18, 2021
Even just a while back, the company purchased $15 million in Bitcoin at the starting of this dip due to the tweets made by Elon Musk. The company’s goal is to hold these coins long-term in order to preserve the value of their money. They also plan to convert 100% of their entire balance sheet to Bitcoin. Michael Saylor has said in many interviews that Bitcoin is not a short-term way of making money but a long-term goal. He is still very optimistic about the $1 million per coin goal and says the target to purchase Bitcoin is not to sell it but to hold it for decades and pass them on to your grandkids.
The share market is not responding quite well to Michael’s BTC purchases.
The share prices of Microstrategy have been continuously falling since Feb 2021. Now it is difficult to say what is the reason for that, but Microstrategy’s share prices are down 60% since Feb. Presently, it is trading at around $500. We can’t be sure to say that Bitcoin is the reason for these falling prices because ultimately, the entire Bitcoin purchase of the company is still up by 60%. The company’s vocal nature and the CEO’s very strong take against fiat and inflationary currencies could be a reason why the prices of Microstaaretgy have been dropping.
But we should also see that other companies are also having a tough time in the public market. Just take a look at Tesla; its price has also dropped significantly while companies like Coinbase that got listed recently are now below the reference price.
What are your thoughts on the price drop of Bitcoin and also Microstrategy’s shares? Do you think that the way Michael Saylor is purchasing Bitcoins is a good idea? let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.
Also Read: Exchanges see huge Bitcoin inflow as prices drop
