MicroStrategy Purchases 301 BTC As Bitcoin Falls Below $20,000

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MicroStrategy purchased 301 BTC as Bitcoin falls below $20,000. Thanks to this purchase, the company now holds close to 130,000 BTC, almost 0.62% of the total Bitcoins supply. The information was released by the company in a recent financial release to the U.S. Securities and Exchange Commission (SEC). 

MicroStrategy Purchases 301 Bitcoin 

MicroStrategy continues to add more Bitcoin to MicroStrategy’s treasury. The company has purchased 301 more BTC. Thanks to the most recent purchase, MicroStrategy now holds almost 130,000 BTC, becoming the company in the world with the largest BTC holdings, according to data shared by Bitcointreasuries

The purchase of 301 BTC was also announced by Michael Saylor, Founder and Executive Chairman of MicroStrategy. The purchase was for close to $6 million at an average price of $19,851 per Bitcoin. As of today, the company purchased 130k BTC for $3.98 billion at an average price of $30,639 per Bitcoin. 

This shows that the company is also lowering the average price at which it purchased Bitcoin. It is also possible to see that they are following a dollar cost average strategy. Every single time that Bitcoin falls below a certain threshold, we see MicroStrategy purchasing more BTC. 

Bitcoin has fallen yesterday below $18,500 for a short period of time. Despite that, Bitcoin was able to recover and it is now being traded at $19,000 according to CoinGecko. It will be a matter of time to see what will happen with Bitcoin in the near future as the coin could experience some volatility depending on the measures taken by central banks around the world, especially the FED. 

Several companies have purchased Bitcoin over the last few years as the market expanded. 2021 was a very good year for virtual currencies and the first year in which a country made Bitcoin legal tender. El Salvador made Bitcoin legal tender and its population is now using BTC as a means of payment for goods and services. Furthermore, the country is also now holding BTC. 

According to Bitcoin Treasuries, Tesla, Core Scientific, Marathon Digital Holdings, and Square are some of the companies that have purchased Bitcoin. Together, these companies hold more than 42,000 BTC, showing that there is a clear interest in holding BTC. 

The future remains uncertain for financial markets, including digital assets. Central banks have now been pushed to raise interest rates over the last year in order to deal with high inflation rates. This is an issue that appeared after the large printing of money that took place during COVID-19 times. 

At the same time, governments are dealing with supply chain issues that are affecting price levels. This is something that is having an impact on macroeconomic policies that governments are taking around the world. Therefore, Bitcoin could get impacted in the future if certain measures are taken by central banks, especially when they raise or lower interest rates.

Jonathan Gibson

Jonathan Gibson