MicroStrategy’s Executive Chairman and Bitcoin maximalist, Michael Saylor, announced the software company had acquired another 2395 bitcoins for $42.8 million.
MicroStrategy Buys the Dip
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
The recent acquisition, which spanned between November 1, 2022, to December 21, 2022, took the company’s entire Bitcoin bag to 132,500 at an average price of $30,397 per piece as of December 27.
The firm acquired 810 bitcoins on Saturday for $13.6 million. This took the total tally of bitcoin acquired from November 1 to 2500 BTC, costing approximately $44.6 million.
MicroStrategy (MSTR) is an American software company founded in 1989. The company is the world’s biggest publicly traded corporate owner of bitcoin and is poised to buy more in the future.
The firm started acquiring bitcoin in bulk in the summer of 2022 when Saylor was CEO. At the time, Saylor disclosed that he chose bitcoin because inflation would soon make cash worthless, insinuating the digital asset was a haven to preserve the value of one’s money.
MicroStrategy Sold Some Bitcoin Holdings
In an SEC filing, MicroStrategy disclosed that it sold 704 bitcoins on December 22. The proceeds from the sales were approximately $11.8 million at $16,776 per bitcoin.
The sale came at a capital loss, but the firm disclosed that it would offset the incurred loss with previous capital gains until they are fully covered. This is the first time MicroStrategy has sold its bitcoins since it started acquiring the digital asset back in 2020 despite stating it wouldn’t sell them.
MicroStrategy DCA Despite Dip Expectations
Bitcoin price has held the $16,800 price threshold well. But there are predominant sentiments that BTC will see more lows, with analysts speculating a drop towards the $14,000-$10,000 price range.
However, Saylor’s MicroStrategy has continued to average the cost of its bitcoin at its current rate. The recent acquisition backs up the company’s trust in the asset.
With its heavy bags holding 132,500 bitcoins, the current worth of MicroStrategy’s entire bitcoin investment sits at $2.25 billion. This is at a $1.75 billion loss as it cost the firm $4 billion to acquire its entire bitcoin holdings.
