Microstrategy scoops up 480 bitcoins amidst market downturn
Microstrategy purchased 480 bitcoins worth $10 million, bringing its total holding to 129,699
By Shashank Bhardwaj
The current market downturn isn’t dampening long-term prospects for Bitcoin, as whales continue to accumulate the crypto. Microstrategy announced on Wednesday that it has added 480 bitcoins to its kitty for approximately $10 million. The purchases were made between May 3 and June 28 at an average price of $20,817 per coin.
The Microstrategy tweet read, “ MicroStrategy has purchased an additional 480 bitcoins for ~$10.0 million at an average price of ~$20,817 per #bitcoin. As of 6/28/22 @MicroStrategy holds ~129,699 bitcoins acquired for ~$3.98 billion at an average price of ~$30,664 per bitcoin. $MSTR.”
Microstrategy’s total bitcoin holdings after the new acquisition come down to 129,699, which are worth $3.98 billion and an average price per bitcoin of $30,664. At the time of writing Bitcoin is trading at $19,385, down by 3 percent from the previous day, more than $10,000 less than the average acquisition price paid by the business intelligence firm. Data provided by Bitcoin Treasuries shows that Microstrategy’s BTC holdings still sit at $1.4 billion net unrealised loss.
The purchase reaffirms Microstrategy CEO, Michael Saylor’s bullish outlook on the largest crypto by market cap despite the recent slump. The information was also disclosed in an 8-K filing with the US SEC. Microstrategy now holds the largest corporate holding of Bitcoin. Saylor had earlier revealed on Twitter that his company had no plans of offloading BTC holdings and will ‘HODL through adversity.’
Saylor reaffirmed Microstrategy's plan to keep holding Bitcoin amidst rumours of a risked margin call in case Bitcoin price slumped below $21,000. Saylor, on the other hand, waved off the rumour as a ‘nothing issue.’The first quarter revenue for the firm was around $119.3 million, of which the gross profit was $93.6 million.
Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajsh
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