Bitcoin

Microstrategy Buys $489M Worth of Bitcoin —Now Holds 105,085 BTC

Published

2 years ago

June 22, 2021

The independent, publicly traded business intelligence company Microstrategy announced the acquisition of 13,005 bitcoin on Monday, at a purchase price of approximately $489 million in cash.

The company’s CEO Michael Saylor revealed the latest purchase on Twitter, and the firm now has more than 100,000 bitcoins on its balance sheet.

Michael Saylor’s firm Microstrategy now has approximately 105,085 bitcoins which it bought for around $2.741 billion. Using the purchasing average, the company says it purchased all the BTC at around “$26,080 per bitcoin, inclusive of fees and expenses.”

As usual, Microstrategy CEO Michael Saylor tweeted about the purchase telling his 1.2 million Twitter followers. “As of 6/21/21 we #hodl ~105,085,” Saylor noted on Monday morning.

Not everyone was impressed with Microstrategy’s bitcoin buy announcement and a few people like Peter Schiff made snide comments. “That’s pretty bearish that you already bought all that bitcoin and the price kept dropping anyway,” Schiff replied to Saylor’s tweet on Monday.

“Consider where the price of bitcoin would be today if Elon Musk, Michael Saylor, Barry Silbert, and all the other bitcoin elites and their friends in the financial media hadn’t spent the last six months convincing retail and institutional investors to buy their worthless tokens,” Schiff said the day prior, as bitcoin’s price began plummeting.

Northman Trader’s Sven Henrich also responded to Saylor’s announcement. “Understand the conviction. Question though: As the price average and employed leverage have both been rising what’s the risk profile/consequence if bitcoin were to drop below the average holding price?” Henrich asked the Microstrategy CEO.

When someone asked Henrich if Saylor’s choice turned out to be a good bet the Northman Trader further commented. “Not saying he’s wrong,” Henrich replied. “Just asking what the risk profile is if [the] price drops below the average holding price.”

Microstrategy’s purchase of 13,005 BTC follows recent news stemming from China’s central bank. On June 21, 2021, the People’s Bank of China (PBOC) issued a notice to a number of financial institutions concerning crypto transactions.

Since then, BTC has dropped 4 percent in 24 hours and rests just above the $32K handle. In other words, the price has actually dipped below the price Microstrategy paid per coin for this most recent BTC acquisition.

Other bitcoin proponents also responded to Saylor’s tweet. “Time to deploy the next billion,” software developer Jameson Lopp tweeted. An individual commented on Lopp’s statement and jokingly said: “Fixed it: Time to deploy the next borrowed billion.”

“Unfortunately, contrary to popular belief one just can’t keep infinitely buying the dip,” an individual said to the many enthusiasts telling the Microstrategy CEO to “keep buying the dip.”

Up Next

US Senator Cynthia Lummis ‘Excited’ About Bitcoin’s Price Falling, Plans to Buy the Dip

Don't Miss

The US Government Auctions $377K Worth of Bitcoin and Litecoin

Temitayo Olukoya

Comments

Bitcoin

Bitcoin Surpasses $42,000 Mark, Ethereum Follows Suit, Triggering Crypto Rally

Published

16 hours ago

December 5, 2023

Investors King

The price of Bitcoin (BTC) exceeded $42,000 for the first time since April 2022, a level unseen since the Terra market crash.

Concurrently, Ethereum (ETH) also experienced an upswing, surpassing $2,200.

Bitcoin had been hovering around the $40,000 level in recent days before finally breaching it and breaking $42,000 within 24 hours.

Ether mirrored this momentum, trading at around $2,240 with a similar percentage gain.

The positive movement in Bitcoin’s price resonated throughout the crypto market, influencing related stocks.

Notably, leading crypto exchange Coinbase (COIN) and tech company Microstrategy (MSTR) both saw nearly 9% increases in pre-market trading while crypto miners Marathon Digital (MARA) and Riot (RIOT) witnessed gains exceeding 10%.

However, BNB coin (BNB), linked to the Binance exchange, remained relatively stable.

Bitcoin’s value had dipped below $40,000 in April 2022, but recent months have seen a rebound, partly attributed to accommodative statements from U.S. central bankers and optimism surrounding a potential approval for a bitcoin exchange-traded fund (ETF) in the United States.

Amidst these developments, Bitcoin holders withdrew 37,000 BTC between November 17 and December 1, indicating a trend toward direct custody of assets.

Gold also reached a record high, surpassing $2,100 per ounce in response to Federal Reserve Chairman Jerome Powell’s dovish comments.

Analysts suggest that the market anticipates a potential rate cut in the coming year, contributing to growing investor bullishness on Bitcoin ETF applications.

As the crypto market aligns with gold’s movement due to lower yields, Bitcoin’s recent surge is seen as a bullish signal, with potential further upticks anticipated in the coming weeks.

Looking ahead, the market will closely watch U.S. ISM services PMI data and non-farm payrolls for December, with a strong NFP figure potentially impacting Fed rate cut expectations for 2024, which could influence Bitcoin’s ascent.

Bitcoin

Bitcoin Breaks $40,000 Price Levels Amidst Optimism and Regulatory Developments

Published

2 days ago

December 4, 2023

Investors King

Bitcoin on Monday broke $40,000 resistance levels following a 2.9% surge in price to $40,867 per coin.

The world’s largest digital currency has now appreciated by 146% in 2023 as more institutional investors continue to increase their investments in the unregulated cryptocurrency space.

Investors are exhibiting growing confidence in the Federal Reserve’s apparent conclusion of rate hikes amid a cooling inflation backdrop.

This shift in sentiment has redirected attention to the anticipated extent of rate cuts in the coming year, prompting a rally across global markets.

The cryptocurrency industry is currently in anticipation as regulatory decisions, particularly regarding applications for the first US spot Bitcoin exchange-traded funds (ETFs), hang in the balance.

Bloomberg Intelligence anticipates the approval of a batch of these ETFs by the Securities & Exchange Commission (SEC) by January.

“Bitcoin continues to be supported by optimism around SEC approval for an ETF and Fed rate cuts in 2024,” noted Tony Sycamore, a market analyst at IG Australia Pty.

Technical analysis points to $42,330 as the next significant level to monitor in Bitcoin’s upward trajectory.

Despite recent crackdowns in the industry, including legal actions against figures like Sam Bankman-Fried and Binance, Bitcoin has proven resilient.

Optimists argue that these regulatory measures, alongside the potential approval of ETFs, signify the maturation of the crypto industry and the prospect of a broader investor base.

According to Su Yen Chia, co-founder of the Asia Crypto Alliance, recent enforcement actions “have instilled confidence among investors,” noting that Bitcoin is aligning with momentum in traditional finance as expectations of Fed rate hikes fade.

Bitcoin

MicroStrategy Chairman Michael Saylor Bolsters Bitcoin Bet with $593.3 Million Purchase

Published

5 days ago

December 1, 2023

Investors King

Michael SaylorPhotographer: Eva Marie Uzcategui/Bloomberg

Michael Saylor, chairman and co-founder of MicroStrategy Inc., has intensified his commitment to Bitcoin with a substantial investment of $593.3 million, expanding the enterprise-software company’s cryptocurrency holdings.

In a filing on Thursday, MicroStrategy revealed the acquisition of 16,130 Bitcoins in November, elevating its total holdings to approximately $6.5 billion.

This move represents Saylor’s most significant purchase since the acquisition of 19,452 Bitcoins for just over $1 billion in February 2021.

Saylor initiated MicroStrategy’s Bitcoin investments in 2020 and has accelerated these efforts throughout 2023, aligning the company with the cryptocurrency’s resurgence after a challenging period marked by rising interest rates and notable crypto-related incidents.

Stepping down from the CEO position a year ago, Saylor emphasized his focus on advancing MicroStrategy’s dual strategy with a primary emphasis on Bitcoin.

MicroStrategy’s stock has witnessed a remarkable 250% surge this year, surpassing Bitcoin’s 125% rally.

The optimism stems from the anticipation of potential approval for a Bitcoin exchange-traded fund (ETF) in the United States.

Contrary to concerns that an ETF approval might diminish demand for MicroStrategy’s stock, analysts like Matthew J. Maley, Chief Market Strategist at Miller Tabak + Co., suggest that an ETF could enhance interest in the asset class without significant cannibalization.

In conjunction with its Bitcoin investment, MicroStrategy entered into an agreement with Cowen and Company, Canaccord Genuity, and BTIG to offer up to $750 million of common stock.

The initial announcement of this stock offering in August outlined intentions to utilize the proceeds for Bitcoin purchases, working capital, and debt repurchases.