MicroStrategy Buys Additional $50 Million in Bitcoin

MicroStrategy’s Bitcoin is now worth $775 million after the company bought another 2,754 bitcoins at $19,427 each—worth a total of $50 million.

December 5, 2020, | AtoZ Markets – Analytics software provider MicroStrategy has made its third investment in Bitcoin (BTC). The CEO of MicroStrategy, Michael Saylor took to Twitter to confirm the Bitcoin purchase.

MicroStrategy buys another $50 million in Bitcoin at over $19,000

According to reports to the US Securities and Exchange Commission (SEC), the company acquired 2,574 bitcoins, which cost it $50 million. MicroStrategy became the first public company to invest in bitcoin as a reserve asset.

Read also: Jack Dorsey’s Square Buys $50 Million Worth of Bitcoin

Sailor added that the investment in Bitcoin is part of a strategy to protect capital surpluses from depreciation due to inflation.

After the last purchase at an average price of $19,427, MicroStrategy now owns a total of 40,824 bitcoins.

In general, for all three operations, each BTC cost MicroStrategy an average of $11,635. At the current exchange rate, the value of MicroStrategy’s assets in bitcoin is about $775 million.

In August, MicroStrategy bought  21,454 BTC ($250 million at the exchange rate at the time of the transaction), in September the company acquired an additional 16,796 BTC for $175 million.

Still bullish

Though the price of Bitcoin has since risen considerably and just this week hit an all-time high near the $20,000 mark, MicroStrategy and its Bitcoin-evangelizing CEO clearly remain bullish.

At the moment, however, many traders believe that Bitcoin is at risk of seeing a deeper pullback to $18,600 following its recent rejection.

Michael van de Poppe, a full-time trader at the Amsterdam Stock Exchange, said that BTC’s fall from $19,100 with a strong reaction from sellers makes a larger drop likely. He wrote:

“Couldn’t break through $19,400 as the crucial breaker, after which a drop occurred towards $18,800. $19,100 area instantly rejected and the likelihood of a drop towards $18,600 increases.”

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