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 has purchased approximately 2,574 bitcoins for $50.0 million in cash in accordance with its Treasury Reserve Policy, at an average price of approximately $19,427 per bitcoin. We now hold approximately 40,824 bitcoins.https://t.co/nwZcM9zAXZ— Michael Saylor (@michael_saylor) December 4, 2020
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.
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.
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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