Undeterred – MicroStrategy invests another 10 million US dollars in Bitcoin
Although the signs on the financial market are improving, the software manufacturer remains true to its buying strategy.
Software maker MicroStrategy, which has now become arguably the most aggressive Bitcoin investor among Bitcoin Evolution companies outside the financial sector, invested a further US$10 million yesterday (Thursday) despite the uncertain current market conditions.
Accordingly, as CEO Michael Saylor announced, his company has purchased an additional 205 BTC, with an average purchase price of US$48,888 for the US$10 million invested. This means that the company now owns a total of 91,064 BTC, equivalent to US$4.3 billion. The total purchase price amounts to 2.196 billion US dollars, which in turn puts the average purchase price at 24,119 US dollars.
The latest purchase of MicroStrategy is one of many „symbolic“ investments in the meantime, because every time Bitcoin is in a downturn, the software manufacturer continues to buy. The publicly traded firm first invested in Bitcoin in 2020, when the market-leading cryptocurrency was still trading at US$10,000. While the investment at that time has since paid off significantly, the most recent purchases initially show a loss.
The last large investment of 900 million US dollars, which was financed by the sale of convertible bonds, came at an average price of 52,700 US dollars.
Since then, however, the bitcoin price has been moving sideways with a downward trend
The main reason for this is probably a slowly changing situation on the financial markets. Jerome Powell, the head of the US Federal Reserve, has now signalled that no further intervention is needed. US government bond yields are currently on a strong upswing, which is traditionally interpreted as a sign of the end of a recession. While this is positive for the stock market and risky financial products, it is negative for the crypto market, as the driving forces behind Bitcoin’s current surge include weak government bonds and repeated intervention by the US Federal Reserve.
So even though Wall Street is threatening to push Bitcoin back down, MicroStrategy, seems undeterred in sticking to its buying strategy. Yesterday’s investment is primarily symbolic, because the „big investor“ did not sell.