MicroStrategy Announces Another $650 Million Bitcoin Purchase

MicroStrategy has purchased an additional 29,646 bitcoins worth $650 million, CEO Michael Saylor said on Monday, December 21.

December 21, 2020 | AtoZ Markets – MicroStrategy has bought additional 29,646 bitcoins for $650 million. The company reported this on its official website. It is noteworthy that the purchase of each bitcoin was carried out at the rate of $21,925 per BTC.

MicroStrategy makes additional Bitcoin investment

As of December 21, 2020, MicroStrategy owns a total of approximately 70,470 BTC ($1.6 billion at $22,880). At the same time, the average purchase price of bitcoin cost about $15,964 per BTC.

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The purchase of almost 30,000 bitcoins can be seen by the bulls as a strong signal for action amid an already all-encompassing hype.

“The announcement of the purchase of additional bitcoins confirms our belief that bitcoin, as the world's most widely used cryptocurrency, is a reliable store of value,” said MicroStrategy CEO Michael Saylor.

MicroStrategy CFO Von Lee notes that the company continues to believe that bitcoin will provide an opportunity for greater profits and retain the value of capital over time compared to cash.

Did MicroStrategy buy the Bitcoin dip?

Notably, the price of BTC plunged and briefly dipped beneath $22,087 at 12:42 GMT on Bitstamp exchange. However, at the time of this writing, the price of BTC/USD is now trading above $23,000. Having soared above $20,000 on December 16, Bitcoin has never dropped below this level.

MicroStrategy Announces Another $650 Million Bitcoin Purchase

MicroStrategy could have taken advantage of that opportunity to “buy the dip.” Nevertheless, this is still unconfirmed as similar large transactions typically take more time to process.

Recently, MicroStrategy successfully offered $650 million in convertible bonds for further Bitcoin purchases.

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