April 14, 2021

Cryptheory

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MicroStrategy defies market dip, buys $10m more Bitcoin

2 min read

TL;DR Breakdown

  • MicroStrategy buys 205 more Bitcoin
  • Saylor says they can hodl BTC for 100 years

Against all market uncertainty, MicroStrategy, a business intelligence firm that has been aggressive investing in Bitcoin has continued to do so.

MicroStrategy CEO, Michael Saylor announced in a tweet today that the firm has bought 205 more Bitcoin at an average price of $48,888. They spent $10 million to acquire all 205 BTC. In total, MicroStrategy now has 91,064BTC worth $4.3 billion. Their entire Bitcoin holding costs $2,196 billion purchased at an average of $24,119.

Their Bitcoin investment today amidst the dip is a symbolic one asserting the firm’s unflinching trust in the cryptocurrency. The business intelligence firm buys more BTC during every dip since they started investing in Bitcoin in 2020.

MicroStrategy’s Bitcoin investment today coincides with a period of heightened tension on markets as feds chair, Jerome Powell stated that bankers do not think current conditions require additional intervention. Bond yields have also been on a steady and powerful rise in the past weeks, which traditionally signals recovery from a recession and heightened inflation expectations.

This should normally reflect well on stocks and risk assets, but the narrative behind 2020’s unstoppable rise strongly relied on low bond yields and continuous Fed intervention as justification for heightened valuations. Wall Street tension seems to be having some effect on Bitcoin as MicroStrategy remains undaunted and keen to continue with its Bitcoin investment.

MicroStrategy set to hodl crypto for 100 years

Previously, the firm‘s CEO, Michael Saylor has said that they are ready to hold unto their crypto for 100 years.

He said this in an interview with Raoul Pal while also asserting that Bitcoin is a better store of wealth compared to gold. The CEO revealed that they invested in crypto because fiat was no longer a safe store of value and that the firm decided to buy Bitcoin after serious meetings with the firm decision-makers and investors. The CEO capped his point explaining that Bitcoin is not speculation for the firm or an hedge but deliberate corporate action.







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