In a tweet, MicroStrategy’s founder and CEO, Michael Saylor, stated that the business analytics firm now holds 114,042 Bitcoins. The CEO also revealed that the firm’s entire Bitcoin holdings have been acquired at an average price of $27,713. This depicts that the BTC holdings are still profitable.
MicroStrategy Buying the Dip
MicroStrategy continues to expand its Bitcoin holdings portfolio as prices dip. In August, the firm purchased around 4000 Bitcoin at an average price of $177 million. In June, the firm raised $500 million in a funding round to purchase 13,000 Bitcoins.
Through these purchases, the firm now holds 114,042 Bitcoin, which is worth more than $5 billion at the current prices.
Saylor has been a major proponent and promoter of Bitcoin. At the beginning of the year, the CEO had stated that Bitcoin would reach $100,000 by December 2021. Despite the current dips making it harder for Bitcoin to achieve these levels, Saylor remains optimistic about a bull rally to come, hence accumulating more holdings for the firm.
Recently, Saylor stated that market pressure would not trigger MicroStrategy to sell its holdings despite price volatility. MicroStrategy has been a major leader in the Bitcoin sector, and it has been involved in helping other firms such as Tesla record Bitcoin in their balance sheets.
Despite its holdings, the firm does not offer any services related to Bitcoin lending, borrowing, or investing. The main objective behind the firm’s increased Bitcoin holdings has been to store the virtual currency and HODL it for an indefinite period. Despite Saylor’s reluctance to sell, it remains to be seen whether his sentiments will change if Bitcoin hits his predicted price of $100,000.
The recent purchase comes at a time when Bitcoin’s price volatility is high. The primary cryptocurrency has dipped to the lows of $44K, despite being endorsed by El Salvador as a means of payment. However, some market analysts believe that the prices of Bitcoin will continue to soar in the coming weeks if market bulls kick in.
However, the purchase came a few weeks after a research analyst from JPMorgan stated that the crypto market was currently “frothy.” In this case, many currencies looked at making major dips if buying support fails. Furthermore, Bitcoin continues to lose its dominance in the market following the massive gain by altcoins. Currently, Bitcoin’s market dominance stands at 39.8%, and its market cap stands at $852 billion, according to data from Coingecko.
MicroStrategy Sells Stocks
In a separate announcement, MicroStrategy announced that it had issued and sold 555,179 common stock shares between July 1 and September 12. The common shares were sold at an average price of $727.64 per share. Through this stock sale, the company managed to raise around $399.9 million in three months.
In another announcement, MicroStrategy stated that it had sold 238,053 shares between July 1 and August 23. The shares were sold at an average price of $753.21 and raised $177.5 million.
Over the past three months, MicroStrategy’s stock has increased by around 21.8%. This gain correlates to Bitcoin, which has also climbed in the past three months following a market rebound in August.