Business intelligence company MicroStrategy has bought another $10 million worth of Bitcoin (BTC). This move shows that the company is convinced that the flagship crypto will rise again after its latest collapse that pushed it below $42,000.
The cash amount earned MicroStrategy 229 BTC at an average price of $43,663. CEO Michael Saylor and the company confirmed the news on May 18, 2021, in a Form 8-K filing with the US Securities and Exchange Commission (SEC).
Interestingly, the acquisition came barely five days after the company acquired 271 bitcoins for an average price of $55,387. Saylor, who is a famous bitcoin proponent also published the purchase on Twitter.
MicroStrategy has purchased an additional 229 bitcoins for $10.0 million in cash at an average price of ~$43,663 per #bitcoin. As of 5/18/2021, we #hodl ~92,079 bitcoins acquired for ~$2.251 billion at an average price of ~24,450 per bitcoin. $MSTRhttps://t.co/fU6LN4WbKI
— Michael Saylor (@michael_saylor) May 18, 2021
Since last summer, MicroStrategy has been accumulating bitcoin and went as far as raising debt to finance more purchases. The firm now has 92,079 BTC on its books, which translates to a total of $2.251 billion at the time of writing.
There is no other publicly traded firm that comes close to matching MicroStrategy’s bitcoin acquisitions. The firm owns 4.38% of Bitcoin’s total circulating supply, based on the latest industry figures. CEO Saylor used the latest price correction to load up more bitcoin with the conviction that it will retest its all-time highs in the near term.
The bitcoin price has corrected by around 23% in the last seven days, which has brought its value back to about $43,000. Notably, the biggest digital currency has been under growing pressure from several negative headlines and technical indicators which suggest that it might never surpass the $64,000 local top during this bull cycle.
Despite all this volatility, institutions have increased their bitcoin purchases in the last 30 days. Data from Bitcoin Treasuries indicates that institutions have accumulated around 215,000 bitcoins over that period.
This market trend highlights a growing conviction from the ‘smart money’ class. Based on previous reports, the recent outflows of bitcoin on Coinbase might indicate that investors are willing to hold their bitcoin funds for longer periods.