MicroStrategy, a publicly traded business intelligence firm, has invested $41 million to purchase close to 2,500 bitcoin in the current crypto bear market.
The company’s CEO, Michael Saylor announced on Twitter that the new bitcoin addition will add to the firm’s holdings which are approximately 132,500 units all of whom were purchased for about $4.03 billion. The average price per BTC bought was also estimated to be $30,397.
MicroStrategy has increased its #Bitcoin Holdings by ~2,500 #BTC. As of 12/27/22 @MicroStrategy holds ~132,500 bitcoin acquired for ~$4.03 billion at an average price of ~$30,397 per bitcoin. $MSTRhttps://t.co/lcMeULcGQk
— Michael Saylor⚡️ (@saylor) December 28, 2022
According to a filed document submitted to the US Securities and Exchange Commission (SEC), the company had purchased the 2,395 bitcoins for approximately $42.8 million at an average price of $17,871 per bitcoin between the period of November 1st and December 21 this year.
The firm, however, sold about 704 bitcoins for about $11.8 million at an average price of $16,776 per BTC thus resulting in a net loss which the firm is probably trying to make up for with this new additional bitcoin purchase.
MicroStrategy’s new bitcoin addition comes at a time when bitcoin has fallen to $16,000 and most retail investors are avoiding adding to their Bitcoin collections due to the dwindling crypto market.
Michael Saylor’s Strategy in the Bear Market
Michael Saylor is usually known for purchasing Bitcoin during the crypto bear market period when the price of digital currencies is at a low. MicroStrategy has publicly stated that it is accumulating the premier coin as a hedge against inflation.
Saylor has argued that Bitcoin is a superior store of value to traditional fiat currencies, which are subject to Central Bank manipulation and can be printed at will.
Saylor has also pointed to the limited supply of Bitcoin as a key factor in its value, as there will only ever be a maximum of 21 million Bitcoins in circulation. By accumulating Bitcoin, Microstrategy is essentially betting that the value of the cryptocurrency will increase over time due to its perceived stability and limited supply.
In November, Saylor stated that Bitcoin is the hope for Lebanon as the country’s currency lost up to 96% of its value to the USD. Saylor added that the commercial banks added to the country’s currency failure.
#Bitcoin is hope for #Lebanon, where the currency has lost 96% of its value vs USD and the banks have failed.https://t.co/DkKrC4zgGY
— Michael Saylor⚡️ (@saylor) November 5, 2022
MicroStrategy has also announced that it is ready to offer a bitcoin lightning solution next year. The Lightning Network is a layer-2 payment protocol built on top of the Bitcoin blockchain that enables off-chain transactions, increasing payment throughput and decreasing transaction fees.
— Michael Saylor⚡️ (@saylor) December 28, 2022
